As the first quarter of 2023 draws to a close, let's take the temperature of the stock market. The CAC 40 seems to be thriving, reaching a new record last Thursday, at 8,253.59 points. But it is not only the Paris Stock Exchange that is shining during this long Easter weekend: Wall Street, the Nasdaq Composite, the Dow Jones and company are also showing solid performances. Detailed analysis !
Stock market explosion: The CAC 40 on an upward slope despite uncertainties
Despite the upheavals in the French economy, the CAC 40 caused a sensation with its exploits : crossing the threshold of 8,000 points at the end of February, confirmation of a rise beyond 8,000 points at the beginning of March, and dazzling performances of the heavyweights of the Paris Stock Exchange. The latest statistics suggest a continuation of this upward trend.
Despite an eventful week, marked by slight stability (+0.01%) at the end of the session on Thursday, The Paris Stock Exchange closed the month and the quarter in green, thus achieving a remarkable feat. The flagship CAC 40 index climbed one point to reach 8,205.81 pointswith a morning peak reaching 8,243.33 points, thus consolidating an upward trend already well established.
This impressive rise was marked by a new absolute recordwith a peak reached at 8,253.59 points during the last quarterly session. A performance all the more remarkable as it occurred on the eve of the Easter weekend, a traditionally calm period on the stock markets.
According to Edouard Kerhor of Milleis Banque Privée reported by TV5 Worldthis progression is fueled by the prospect of lower rates, thus promoting an optimistic and prosperous market. Despite persistent uncertainties, the CAC 40 recorded a spectacular increase of 8.78% since the start of the yearsurpassing initial guidance for all of 2024 in a single quarter.
This feat was highlighted by a fifth consecutive month of increase, with an increase of 0.66% this week and an impressive increase of 3.51% in March. Despite this positive trend, some experts remain cautious about the future outlook, suggesting a possible correction next quarter.
American indices in full celebration, the Euro-Stoxx50 shy
While the Euro-Stoxx50 has timidly crossed the 5,100 point mark, showing annual growth of 12.8%, its gain is only 0.1%. Meanwhile, the DAX40 continues to hover around 18,500 points, without much variation.
Across the Atlantic, the S&P 500 navigates around equilibrium this Thursday, but records an impressive increase of 10% since the beginning of the year. The beloved index of American managers seems ready to sign its best first quarter since 2019, with a performance of 13.07% during this period. For his part, the Dow Jonesin increase of 5.5% on the streak, is on pace for its strongest quarter since 2021, with growth of 7.76%. As to Nasdaq Compositehe is not to be outdone, displaying a annual growth of 9.2%.
Despite this upward trend, the first quarter of 2024 was less flamboyant than that of the previous year, when the market jumped 16.77%. Behind these impressive performances is a familiar name: Nvidia, leader in graphics card chips. The company recorded a growth of 83% in three monthsafter having already jumped by almost 240% in 2023.
According to Arnaud Cayla, deputy general manager at Cholet Dupont AM, this optimism is fueled by the prospects of rate cuts by central banks (Source : The echoes). Investors are inclined to stay in the market, without any reason to sell.
Before the long Easter weekend, when Western markets close their doors for a few days, investors were reassured by the latest estimate of US GDP growth in the fourth quarter. The upward revision of +0.2% brings the growth rate to 3.4% on an annual basis, according to the Commerce Department.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
