On Tuesday, French stocks experienced a significant increase following the announcement of substantial economic stimulus measures by China's central bank, the most considerable since the onset of the pandemic. These measures aim to bolster the economy and mitigate the ongoing downturn in the property sector.
The central bank stated its intentions to reduce borrowing costs and infuse additional liquidity into the financial system, thereby facilitating greater lending capabilities.
Regulatory bodies also introduced initiatives designed to ensure the stable development of the stock market. Consequently, the benchmark CAC 40 index rose by 118 points, or 1.6 percent, reaching 7,625, building on a modest 0.1 percent gain from the previous day.
Luxury companies with connections to China saw significant gains, with LVMH, Kering, and Hermes International all climbing by 4-5 percent.
TotalEnergies saw an increase of 1.5 percent. The integrated energy firm announced it has executed a Heads of Agreement (HoA) with South Korea's HD Hyundai Chemical, committing to supply 200,000 tons of LNG annually over a span of seven years, commencing in 2027.
