The French Blue Chip stock index, the CAC 40 soared almost 29 percent in 2021, its best showing in over 20 years after closing the last day of the year down 0.9% to 7,153. A strong reversal from being down 7.1% in 2020. The CAC recovered from bouts of panic selling on the back of the coronavirus pandemic. France’s stocks were the best performing in Europe.
CAC40 For 2021
The CAC 40 Index closed at 7,153 on the final trading day of the year, just off all-time highs of 7,201.65 on December 29th and gaining 29% on the year.
The CAC 40 bottomed in March 2020 at a 4-year low as sentiment has been supported by the massive fiscal and monetary policy support globally and more recently the roll-out of COVID-19 vaccines and a post-Brexit trade deal at year end. However major concerns about the impact of current restrictive measures amid a new strain of coronavirus traced to South Africa and the UK have been limiting gains.
CAC 40 Highlights
- Consumer discretionary goods soared 39% on the year, carried by a strong recovery of luxury goods.
- Hermes grew 74%, driven by higher demand in Asian markets, and was added to the Stoxx 50 index in the beginning of December.
- LVMH gained 42% on the year and closed around record highs.
- Airbus rose 25%, as vaccine rollouts and opening borders increased the demand from commercial airlines in 2021.
- The financial sector rose 37% on the year, driven by Societe Generale (77.5%), aided by the ample stimulus of the ECB’s PEPP.
For France It was the steepest yearly rise for the index since 1999. The CAC40 was underpinned by strong economic recovery in the luxury goods, tech, and banking sectors.
In its latest economic outlook, INSEE revised France’s yearly GDP projections upwards to 6.7%, the highest rate since 1969.
How European and UK Largest Caps Fared in 2021
How Global Indices fared in 2021
- The German DAX Finished Up for the Third Straight Positive Year up 15.79% for 2021 – TRADERS COMMUNITY
- Spain’s IBEX Worse Performing European Stock Market in 2021, Finished Up 7.9% – TRADERS COMMUNITY
- FTSE 100 Recovers in 2021 To Be up 14.3% After 2020 Annus Horribilis – TRADERS COMMUNITY
How Global Indices fared in 2020
- In the U.S. the S&P 500 and Dow closed at record levels at the year end.
- The tech heavy Nasdaq led the charge in 2020 up 43.64%, the largest gain since 2009
- S&P was up 16.26%. Since 2010 the S&P is up 240%, though 57% of the gain in the S&P was from just three stocks Microsoft, Amazon and Apple
- The Dow is closed up 7.25% after being down most tof the year, the DJIA was down over -36% at the March low
- In Europe the best performer was the German DAX which rose +3.6% for the year.
- Spain’s IBEX 30 was an even worse performer than the FTSE 100 down -15.5%.
- Italy’s MIB fell -5.4%,
- The French CAC 40 fell -7.1%
- The British FTSE 100 dumped. -14.3%
- The Australian ASX 200 Stock Market Closed Down 1.5% in 2020
- Japan’s Nikkei gained 16%,
- China’s Shanghai composite rose ripped 14% during 2020.
In 2020 the euro however rallied against the US dollar as massive US QE weakened the dollar and relief that the UK-EU free trade deal had been agreed boosted the euro. The stronger euro helped soften losses for overseas investors in the French stock market.
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