Why did the CAC40 (once more) beat its factors file this Friday? | EUROtoday
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Et of seven! Friday February 23, for the seventh day in a row, the Paris Stock Exchange ended its session with a brand new file quantity. The CAC40, which brings collectively forty of the hundred largest market capitalizations of French corporations (amongst others Alstom, Carrefour, LVMH, Total Énergies and Vinci), now stands at 7,967 factors, a rise by 0.71% in comparison with the day prior to this. The index even exceeded 7,976 factors throughout the day.
Among the favored shares, Air Liquide, a gaggle specializing in industrial gases, leads the way in which with a rise of two.20%. Digital providers firm CapGemini additionally rose 1.99 factors.
According to Alexandre Baradez, head of market evaluation for the dealer IG, the restoration of the posh sector advantages the index. “The very large stocks, which were struggling a few months ago, have recovered well, notably Hermès and LVMH. » On the other hand, the varied composition of the CAC40 allows it not to depend on a single sector of activity and thus gives it better stability. “Stellantis is also a hit at the moment, just like the FDJ,” provides the skilled.
The Nvidia phenomenon
However, if the locomotives of the French economic system are doing effectively, the distinctive performances of the CAC40 come primarily from overseas. “China is accumulating support measures after three very bad years,” observes Alexandre Baradez.
It is very throughout the Atlantic that financial vitality is most hanging. “American growth is not experiencing the crisis, and continues to progress,” underlines the analyst. After a rise of two.5% final yr, forecasts for 2024 anticipate an extra enhance in gross home product (GDP), of two.1%. A exceptional efficiency on condition that the important thing charges of the Fed, the American central financial institution, have by no means been so excessive since January 2001.
In the United States, the thrill across the digital chip design firm Nvidia, mandatory within the growth of synthetic intelligence, is breaking information. The capitalization of the corporate listed on Wall Street alone elevated by a further 277 billion on the one day of Thursday February 22. Never earlier than has a valuation skilled such a surge within the American market.
In query, the publication of outcomes for the final three months of 2023, and the introduced tripling of turnover within the first quarter of 2024. And in its wake, your entire technological sector is progressing. “By its result alone, Nvidia caused everything else to rebound,” notes Alexandre Baradez, who believes that it “exaggeratedly influences the other values of the Nasdaq”.
Euphoria subsequently appears to have unfold to all of the world's inventory markets: the Nikkei – the flagship index of the Tokyo Stock Exchange – broke its 35-year-old historic file this Thursday, February 22. Ditto the identical day for the German DAX40, the German equal of the CAC40, which subsequently doesn’t itself escape this galloping optimism.
Glass half full
However, the European and French macroeconomic actuality is far more blended. The Ministry of the Economy lately lowered its progress forecast for the yr 2024 to 1.4%, in comparison with 1% beforehand. Germany entered recession in 2023 and is anticipated to be once more this yr, whereas throughout the Channel progress barely reached 0.1 in 2023.
Also watch out to not settle down the central banks, warns Alexandre Baradez. After months of successive will increase, the markets anticipate a lower in “historically, the ECB has always lowered its rates after the Fed, but if it does it earlier this time, the euro could weaken against the dollar”, analyzes the skilled, who calls on the markets to “remain vigilant”.
This Friday, Nvidia exceeded $2,000 billion in market valuation, changing into the third most respected firm on the planet, behind Microsoft and Apple.
https://www.lepoint.fr/economie/pourquoi-le-cac40-a-t-il-encore-battu-son-record-de-points-ce-jeudi-23-02-2024-2553259_28.php