June 10, 2025 ☼ Zettelkasten ☼ Automated Post
Screenshot of The S&P 500 is up 24% in 2 months; France’s CAC 40 is up 18% in the last 25 years | Investorsobserver
French stocks posted their worst performance in decades in 2024, particularly underscored when compared to the U.S market. The CAC 40, which tracks the 40 largest French companies on the Paris stock exchange, has experienced sluggish long-term growth with a slight gain of 18% since 2000. The index is heavily concentrated in key sectors like luxury goods and financial services, making it susceptible to sector-specific downturns. Persistent investor concerns revolve around political instability, continued high inflation, and diminishing foreign investment. Also, the higher borrowing costs in France compared to other EU nations add to the pressure on companies that rely on debt for growth and operations.
Meanwhile, the CAC 40 has seen a moderate surge of over 5% since the beginning of 2025, recovering from the steep April plunge led by trade tension. Occasionally in 2025, French stocks and European markets broadly outperformed their U.S. counterparts, marking the first period of relative strength since 2000. However, analysts express caution about the outlook with European markets facing significant headwinds in matching American-style returns due to structural concerns around innovation gaps and complex regulatory frameworks. France’s economic growth also lags with a GDP increase of just 0.1% in Q1.#FrenchStockMarket #CAC40 #EUversusUS #EconomicGrowth #TradeWar