Momentum Highlights: CAC 40, LVMH, Hermès, Safran, Airbus, Alstom, and Axa in Focus

This week, the Paris Stock Exchange has gained nearly 2% with the CAC 40 index, contrasting Wall Street’s 2% decline. U.S. inflation concerns and a disappointing employment report, despite strong job growth, have affected investor sentiment. Rising long-term interest rates are making equities less attractive, impacting growth potential. In Europe, increasing rates raise fears for the fragile economic recovery. Momentum stocks outperformed the CAC 40, with notable gains from companies like Maurel & Prom and Vallourec.

Paris Stock Exchange Sees Gains Amid Wall Street Struggles

This week, the Paris Stock Exchange has been on a winning streak, with the CAC 40 index experiencing a near 2% increase as of now. This positive momentum stands in stark contrast to Wall Street’s performance, where the S&P 500 has seen a decline of 2% from one Friday to the next. Concerns about persistent inflation in the U.S. and potential setbacks regarding the Federal Reserve’s interest rate trajectory have contributed to this downturn, alongside worries surrounding Donald Trump’s economic policies, which are generally viewed as inflationary. The U.S. employment report released on Friday further fueled these concerns.

U.S. Employment Report and Its Implications

The latest employment report revealed 256,000 job creations, far exceeding economists’ expectations of 165,000. While the job market remains robust and the unemployment rate dipped from 4.2% to 4.1%, these figures do not provide complete reassurance. Lombard Odier Investment Managers highlighted that tensions in the labor market could have inflationary repercussions. However, they noted a slight silver lining as wage growth of 3.9% was lower than the anticipated 4%. Meanwhile, the recent uptick in energy and metal prices continues to stoke inflation concerns. Overall, the disappointing inflation trajectory has become a significant worry for investors.

The rise in long-term interest rates has made equities less appealing and poses a risk to economic growth. The U.S. 10-year interest rate has surged by 1.1% since last September, despite interest rate cuts from the Fed and ECB, raising alarms globally. This upward trend, driven by ongoing inflationary pressures and public finance concerns, is making stocks less attractive, which could impact corporate investments and stifle economic growth.

While the CAC 40 and European stocks have maintained their strength against Wall Street, the ripple effect of rising long-term rates in the U.S. is being felt in Europe. French and German 10-year rates have climbed significantly since early December, prompting fears that the fragile economic recovery in Europe could be jeopardized. The eurozone economy is still relatively weak compared to the robust U.S. growth. Nonetheless, the CAC 40 and the eurozone stock market have outperformed expectations since the beginning of 2025, with the eurozone stock index rising over 2% in just a week, showcasing a resilience that defies the prevailing pessimism.

Momentum stock selection has outperformed the CAC 40 this week. While the CAC 40 rose nearly 2%, the momentum stock selection has shown even stronger gains, with notable increases in stocks such as Maurel & Prom (+7%), Vallourec (+8%), and ASML (+6%). Our team was able to accurately predict the CAC 40’s trajectory this week by identifying key support and resistance levels through technical analysis.

This week, in addition to our ongoing analysis of the CAC 40, we have pinpointed buying opportunities across various listed stocks while also cautioning our readers about potential pullbacks in specific equities. We evaluated the future prospects of companies such as Safran, Airbus, Eurofins Scientific, Alstom, Bureau Veritas, STMicroelectronics, Mersen, Axa, ASML, Hermès, LVMH, Vallourec, Technip, and OPmobility (formerly Plastic Omnium), presenting both bullish and bearish scenarios. For detailed daily analyses of the CAC 40 and other listed stocks, consider opting for an annual subscription, which offers five months free. Click the link to take advantage of this offer.

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