21.10.202515:46:14UTC+00CAC 40 Climbs To Record High

On Tuesday, the CAC 40 climbed by 0.6% to close at a record high of 8,259. This upward movement came as robust corporate earnings overshadowed concerns about France's credit outlook and political tensions. The market rally was bolstered by Prime Minister Lecornu surviving two no-confidence votes, paving the way for budget discussions, coupled with a strong earnings season that supported major stocks. Shares of EssilorLuxottica rose by 0.9% and LVMH by 0.8%, continuing their gains from last week's positive results. Meanwhile, Kering made progress following its agreement to sell its beauty division to L’Oréal. Edenred saw an impressive surge of 19.6% after reporting a 7.3% growth in comparable revenue, up from 6.4% in the first half, whereas Eurofins Scientific fell by 2.2% due to quarterly sales missing expectations. Nonetheless, political instability and the unscheduled downgrade of France's sovereign rating by S&P could keep risk premiums high, potentially capping further gains for stocks with domestic exposure.