French stocks are the breakout stars of 2023, fueled by the relentless momentum behind luxury-goods producers LVMH, Kering and Hermes International.
The benchmark CAC 40 Index is up 14% this year, outpacing other major markets and putting it on the cusp of eclipsing the record closing high set in January 2022. The trio of luxury companies, plus cosmetics maker L’Oreal SA, account for more than a third of the gain. Investors are betting their sales and earnings will hold up now that a key market, China, is open for business again.
