French Stock Market Defies Chaos With 5-Day Winning Streak Amid Nationwide Riots
Portfolio Pulse from Piero Cingari
Despite nationwide protests and riots in France, the French stock market, represented by the CAC 40 index, has risen for five consecutive days, marking a 3.3% gain. This performance is largely due to the international focus of French luxury brands, such as LVMH and L'Oréal, which are predominantly represented in the CAC 40 index and tracked by the iShares MSCI France ETF (EWQ). These companies generate a significant portion of their revenues from international markets, shielding them from domestic upheavals.
June 30, 2023 | 7:25 pm
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POSITIVE IMPACT
The iShares MSCI France ETF (EWQ) tracks the CAC 40 index, which has been performing well despite domestic unrest in France. This is due to the international focus of the French luxury brands it represents.
The CAC 40 index, which EWQ tracks, is performing well despite domestic unrest in France. This is largely due to the international focus of the French luxury brands it represents, which generate significant revenues from international markets, thereby shielding them from domestic upheavals.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
L'Oréal S.A. (LRLCY), a CAC 40 heavyweight, generates only a small portion of its revenue domestically, with more than three quarters coming from outside Europe. This international focus shields it from the impact of domestic political and social upheavals in France.
L'Oréal's international focus, with more than three quarters of its revenue coming from outside Europe, shields it from the impact of domestic political and social upheavals in France, contributing to its resilience.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
LVMH (LVMHF), a conglomerate of luxury product brands, generates only 8% of its total revenues from France, with the majority coming from international markets. This shields it from the impact of domestic political and social upheavals in France.
LVMH's international focus, with only 8% of its total revenues coming from France and the majority from international markets, shields it from the impact of domestic political and social upheavals in France, contributing to its resilience.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100