S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Shares of French luxury goods companies and banks rose after the latest inflation reading showed an increase in inflation. Inflation is rising INSEE data confirmed an acceleration of inflation in France.
- In May, the HICP (year over year) reached 2.8%, the highest level since 2024.
Who is rising? The top gainers among luxury companies were LVMH (MC.FR) +4%, Hermès (RMS.FR) +4%, and Kering (KER.FR) +5%. MC.FR (D1)
The price broke above resistance at the 78.6% Fibonacci level (where the long-term trendline also runs) and stopped at the 61.8% Fibonacci level, where the EMA200 moving average is also present. Source: xStation5 Gains also extended to French banks, including BNP Paribas (BNP.FR) +5%, Société Générale (GLE.FR) +6%, and Crédit Agricole (ACA.FR) +3%.
BNP.FR (D1)
The bank’s valuation is approaching an all-time high. Based on Fibonacci levels, the next potential target for buyers can be set at around €110–€120. If buyers lose momentum, the first support level would be around €88. Source: xStation5
The market reaction stems from the belief that both sectors may perform relatively well in an environment of elevated inflation. For banks, higher price pressure can support expectations that interest rates will remain higher for longer, which typically improves net interest margins. Luxury companies, in turn, have historically shown the ability to pass higher costs on to customers without materially weakening demand – especially among wealthier consumers.
