The French CAC 40 stock index, which is tracked by the iShares MSCI France ETF EWQ, reached an all-time high on Wednesday, as U.S. inflation data showed CPI rose by 5% year-over-year in March, down from February's 6% annual increase.
The CAC 40 index extended beyond 7,400 points, breaking previous highs set in March 2023 and January 2022.
Since the start of 2023, the index is up by 13.7%, having risen by 30% from the mid-October 2022 lows.
Read also: France Eyeing Antitrust Action Against Apple
Luxury Brands Pushed Cac 40 To Its All-Time Highs
Luxury brands were a key factor in driving up French equities, contributing the most to the index's overall gain.
Year to date, LVMH Moet Hennessy Louis Vuitton SE LVMHF is up 24%, while Hermes International S.C.A. ADR HESAY is up 30%.
CAC 40 Technical Analysis: Bearish RSI Divergence Forming
Technically, a bearish RSI divergence is forming in the CAC 40, as prices reached new highs while the momentum indicator trended lower.
A bearish RSI divergence may suggest an exhaustion of the upward trend and should caution traders looking for short-term gains following the impressive recent rise.
The French main stock market index is now trading 3% and 13% higher than its 50-day and 200-day moving averages.
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