French Stocks Rally as Investors Monitor Trade Tariffs

French stocks are up marginally as investors assess potential trade tariffs from the Trump administration. The CAC 40 has shown slight recovery, with notable gains from LVMH and Renault, indicating a stable market environment.

Date: 21-01-2025

AI Rating: 6

**Market Reaction**: The French stock market exhibited a marginal increase as the benchmark CAC 40 index rose slightly by 0.04%. This reflects investor sentiment responding positively after an initial weak opening, particularly while considering the global trade dynamics influenced by the Trump administration.

**Stock Performances**: LVMH, Renault, and Hermes International saw gains ranging from 1% to 1.5%. These increases may suggest strong investor confidence in these companies amidst the fluctuating market conditions. On the contrary, some stocks, such as Teleperformance and ArcelorMittal, experienced declines of up to 1.3%, indicating mixed performance across different sectors.

**Automobile Market Insights**: The report also highlighted the automobile market, where new car registrations in the EU increased by 5.1% year-over-year in December, signaling a rebound after a decline in November. This upward trend in new car sales is largely attributed to significant growth in the Spanish market, with a noted 28.8% increase. Competitively, France also showed growth but at a modest rate of 1.5%. Meanwhile, Germany and Italy experienced declines in car sales, with drops of 7.1% and 4.9%, respectively. This mixed performance across major markets could affect stock valuations in the automotive sector, particularly for companies like Renault.

Stocks: LVMH Renault AIRBUS SOCIETE GENERALE