(Bloomberg) -- Stellar earnings put French stocks on track to close at the highest level since 2007, capping a decade of outperformance over the euro zone.
The CAC 40 index rose 0.9% as of 2 p.m. in Paris as a slew of French companies posted results that beat estimates. The gauge, like equities across the region, got an added boost as the European Central Bank signaled further monetary stimulus, with lenders jumping after the authority said it's considering a tiering system for rates that could help the sector.
Among French stocks to rise on better-than-expected results Thursday were Schneider Electric SE, Orange SA and Danone. But the crown jewel was LVMH, which notched a new record as creative revamps at its Louis Vuitton and Christian Dior brands won over shoppers and helped weather slowing Chinese economic growth. The CAC's second-largest stock is up 584% in the past 10 years, compared with the benchmark's 68%.
LVMH, with its turbocharged sales expansion, has been especially alluring to investors desperate for high-quality stocks posting reliable growth regardless of the economic cycle. The luxury conglomerate's second-quarter results would indicate that reputation is well-deserved.
--With assistance from Namitha Jagadeesh.
To contact the reporter on this story: Justina Lee in London at jlee1489@bloomberg.net
To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Paul Jarvis
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