Luxury Falters, Geopolitics Weigh: CAC 40 Slips Further into the Red
In a persistently tense geopolitical climate, European markets closed the penultimate session of the week in mixed fashion. Marking its fourth consecutive day in negative territory, the CAC 40 slipped by 0.21% to 8,313.12 points. The Paris benchmark was dragged down by a decline in luxury stocks, despite Richemont posting solid results for the third quarter of its 2025/2026 fiscal year. The SBF 120 lost 0.19% to 6,287.20 points. Conversely, the Eurostoxx 50 gained 0.71% to 6,047.49 points. London, Frankfurt, and Amsterdam also ended the day in positive territory.
Published on 01/15/2026 at 10:23 pm IST
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Investors remain closely attuned to the evolving geopolitical situation, which continues to impact markets. Iran is experiencing a massive wave of protests, which are being violently suppressed by the authorities.
After holding a Defense Council meeting Thursday morning at the Élysée Palace, French President Emmanuel Macron announced the deployment of additional land, air, and maritime resources to Greenland in the coming days. This decision is a response to Donald Trump, who seeks to annex the Danish sovereign island.
During his New Year's address to the Armed Forces, the French head of state asserted that "Europeans have a particular responsibility" in Greenland "because this territory belongs to the European Union."
Elsewhere, instability lingers in financial markets after Washington officially imposed a 25% tariff yesterday on certain semiconductors transiting U.S. soil. Meanwhile, in the United States, tensions remain high between Donald Trump and the Federal Reserve. While the American president told Reuters he is not currently considering the immediate dismissal of Jerome Powell, he stated it is still too early to decide the fate of the current chairman of the U.S. central bank.
Semiconductors Shine, Luxury Disappoints
On the trading floor, the earnings season is now underway on both sides of the Atlantic, drawing investors' attention.
Swiss luxury giant Richemont recorded one of the sharpest declines on the SMI, despite posting robust sales that surpassed analysts' forecasts in the third quarter of its off-cycle 2025/2026 fiscal year. While this commercial momentum could have sparked enthusiasm, investors remain concerned about weak currencies and rising costs for raw materials (precious metals), which continue to weigh on the group's margins. As a result, luxury stocks slumped in Paris: Kering dropped 3.16%, LVMH lost 1.91%, and Hermès slipped 0.18%. Moncler fell 1.61% in Milan, and Burberry declined by nearly 3% in London.
In contrast, the semiconductor sector soared following record results from Taiwanese group TSMC and its better-than-expected outlook for 2026. Soitec surged 3.15%, making it one of the top performers on the SBF 120, while STMicroelectronics posted one of the biggest gains on the CAC 40 with an increase of over 1%. ASML Holding jumped more than 6% in Amsterdam, hitting an all-time intraday high.
On the macroeconomic front, it is worth noting that UK GDP grew more than expected year-on-year in November: +1.4%, compared to a consensus of 1.1%. "After several months of very sluggish activity, the November GDP release suggests the British economy still retains some momentum. Looking ahead, however, the engines for a sustained recovery through 2026 remain hard to identify. In this context, we continue to anticipate a cut in the Bank of England's key rate to 3% this year, provided inflation develops favorably," commented Luke Bartholomew, Deputy Chief Economist at Aberdeen.
In the United States, the Department of Labor reported 198,000 new weekly jobless claims for the week of January 5. This figure is down by 9,000 from the previous week's revised level (revised from 208,000 to 207,000) and significantly below the consensus expectation of 215,000.



















