France’s CAC 40 index advanced over 7,000 points for the first time in history on Friday and closed the week at 7,040 points. Gains were driven by fresh records from L’Oreal and Hermes, and the luxury goods sector continues to push the index upwards.
European stocks continue to perform well as many big companies reported strong third-quarter earnings results. French Finance Minister Bruno Le Maire said that the French economy is “doing well” thanks to a rise in consumer spending, and he expects that the economy could grow 6% this year.
It is important to mention that the European Union’s GDP grew by 2.1% in the third quarter, driven by better-than-anticipated growth in Italy and France.
French President Emmanuel Macron unveiled a €30 billion investment plan in October to make France less reliant on foreign imports and to support a variety of other sectors ranging from the nuclear industry, electric cars to agriculture, from space to biotechnology.
Data compiler IHS Markit reported last week that France’s services sector grew in October at its fastest pace since July, and employment growth reached a 20-year high. IHS Markit senior economist Joe Hayes, added:
Services output is still rising at a relatively sharp rate by historical standards as activity levels within the economy return to pre-pandemic levels. Demand conditions are still robust, and firms are adding more staff to the payroll. However, we cannot ignore what’s happening over in the manufacturing sector.
The world’s supply chains crisis represents a serious problem for the global economy, while the semiconductor shortage throttling global car production suggests more pain for the automotive industry.
The European Central Bank recently reported that exports from Eurozone would have been at least 7% higher
