FX.co ★ CAC 40 Surges on Luxury Stocks Rally

On Wednesday, the Paris CAC 40 surged by 2.4%, reaching approximately 8,112, propelled by a robust rally in luxury stocks. LVMH stood at the forefront of this upturn, soaring by 13.1% subsequent to its announcement of a 1% year-on-year increase in Q3 2025 sales, marking its first quarterly growth of the year. These figures exceeded market expectations, suggesting a potential easing in the slowdown of global luxury demand. Similarly, competitors Kering and Hermès saw significant gains, rising by 6.7% and 7.6%, respectively. In the telecommunications sector, Orange experienced a 3.5% increase, while Bouygues saw an 8.4% rise, following reports of Bouygues Telecom, Free, and Orange submitting a non-binding joint bid of €17 billion to acquire a majority of Altice’s French assets. Politically, Prime Minister Sébastien Lecornu declared a suspension of pension reform until post-2027 presidential elections, a strategic move to garner broader parliamentary endorsement for the 2026 budget. Concurrently, the French Socialist Party's decision to refrain from supporting a no-confidence motion helped alleviate political uncertainty.