CAC 40: Best CAC 40 stocks to watch in December 2023

What is the outlook for the CAC 40 in the month of December 2023?

THAT CAC 40 lists the 40 largest companies by market capitalization of Euronext Paris. France represents a fifth of Europe’s total economy, so the CAC 40 index can help traders determine the direction the European economy is heading.

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The French economy experienced its first economic slowdown since the first quarter of 2022, falling to 0.1% quarter-on-quarter in the third quarter of 2023, after growing by 0.6% in the previous period. Exports fell by 1.0% (versus +2.5% in the second quarter) and imports increased by 0.1% (versus +2.4 percentage points).

At the same time, domestic demand increased as household consumption increased (+0.6% vs. -0.1%), stimulated by the increase in expenditure on goods (+0.6% vs. -0.6%), especially in food and processed products. On an annual basis, the economy grew by 0.6%, the slowest growth in more than two years, according to INSEE.

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Some analysts predict that further rate hikes may be ruled out by the ECB due to the sharp drop in inflation. The latest figures indicate that inflation in the euro area fell more than expected in November 2023, reaching 2.4%, the lowest point since July 2021.

The HCOB France composite PMI was revised up slightly to 44.6 in November 2023 compared to the flash estimate of 44.5. The slowdown continued to be widespread by sector, with the most significant slowdown being the manufacturing sector (PMI of 42.9 compared to 42.8 in October). However, the dominant service sector also recorded another solid decline (PMI to 45.4 vs. 45.2).

On the price front is inflation Input costs fell but remained close to a five-month high in October 2023. Producer price inflation accelerated to a five-month high.

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Among them CAC 40 companies to see for this month of December 2023, we find:

  1. Schneider Electric

  2. LVMH

  3. Liquid air

  4. BNP Paribas

  5. Stellantis NV

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