Towards a seventh consecutive month of increase for the world stock markets? Investors seem to have regained their optimism and August is off to a good start. With the exception of the German Dax which has just finished in the green, weighed down by Allianz’s woes, European indices were in very clear progress on Monday. The European Stoxx 600 index even broke a new all-time high, at 464.45 points.
In Paris, the CAC 40, up 0.95%, reached its highest levels of the year, both in session, at 6,690.80 points and at the close, at 6,675.90 points. On June 17, the Parisian index interrupted its race at 6,666 points. The CAC 40 had not climbed as high since September 2000, but it would still have to progress by almost 4% to exceed its historic record of 6,922 points.
Profits for companies in the first half of the year are better than expected, leading macroeconomic indicators are reassuring and the gigantic US infrastructure investment plan could be approved by the Senate this week. Enough to take the concerns related to the Delta variant into the background.
“Eurozone companies are exceeding expectations by 25% in terms of profits and 5% in terms of turnover. In the United States, upside surprises are 20% for profits and 5% for sales. », Notes Patrick Moonen, in charge of market strategy at NN Investment Partners. It is common for listed companies to “beat the consensus”, but not in such proportions. Importantly, “the outlook is positive, which is reflected in the upward revisions to the estimates for the third quarter. “
Up more than 20% since the start of the year, “the CAC 40 benefits from the overwhelming weight of luxury in the index and the sector’s dazzling performance,” underlines Patrick Guérin, co-director of management at Bordier & Cie. At more than 345 billion euros, the capitalization of LVMH now represents more than 15% of that of the CAC 40.
Another driver, according to the manager: “the” recovery “of financial and industrial stocks which were late, such as Saint Gobain, Essilor, or Airbus. Monday, for example, Axa took more than 4% after the publication of half-year results up sharply and higher than those before the pandemic.