The CAC 40 Index has been under pressure recently, falling for eight consecutive weeks, and reaching its lowest level since March this year. It has moved into a local correction after falling by 10% from its peak.
The index has dropped because of the rising bond yields in France and the fact that the European Central Bank (ECB) decided to hike interest rates last month.
At the same time, there are concerns about the country’s economy that has led thousands to protest. More than 400 schools will be closed today as these protests intensify. This article looks at some of the top CAC 40 shares to watch.
Schneider Electric stock in focus ahead of a big buyout
Schneider Electric stock has been in a strong rally this year as demand for its products has continued rising. It was trading at 303 euros, a few points below the all-time high of 312 euros.
The company will be in the spotlight as investors react to the potential buyout of PTC, an American company in the engineering software industry. According to the FT, the company plans to make a $20 billion bid for the firm. If the deal closes, it will be its biggest buyout ever.
PTC, which has a market capitalization of $15.5 billion, makes several software packages, including Creo, which are widely used in the manufacturing industry. Its solutions will help to complement those offered by Aveva, the company it acquired in a $11 billion deal.
Olivier Blum, the company’s CEO, has said that he was actively pursuing for deals in the software industry that will help the company supplement its industrial automation business. In June, it acquired Cognite in a $3.1 billion deal. Cognite provides industrial data and AI solutions. It also spent $1.4 billion acquiring Shelly Group.
LVMH stock in focus as sell-off intensifies
The other top CAC 40 stock to watch will be LVMH, the giant player in the luxury goods industry. LVMH stock is in focus because its stock has continued falling this year and is now at the lowest level since November 2020. It has plunged by over 54% from its all-time high. As a result, Bernard Arnault’s net worth has tumbled by over $77 billion this year.
LVMH’s business has struggled this year as the company’s growth in key markets like China has slowed. While its growth improved in the second quarter, analysts are concerned about the luxury sector’s future performance.
TotalEnergies in focus amid energy market volatility
TotalEnergies stock price has pulled back in the past few weeks as crude oil has wavered. It dropped to 74 euros from the September high of 80 euros. The stock will be in the spotlight this week as investors focus on the developments in the Middle East and Europe.
In Europe, Ukraine threatened to hit Russian energy infrastructure, while in China, officials continued to ban refined petroleum exports. In the Middle East, Iran is expected to launch an October Surprise this month, while Saudi Arabia and Yemen are fighting the Houthis. Higher oil price will benefit TotalEnergies and other companies in the energy sector.
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