CAC 40 and European Markets Bounce Back in September 2025, Fueled by Luxury Stocks and Eurozone Activity

• Why Did European Markets Rally Today?
• Which Stocks Were the Biggest Movers?
• What Do the PMI Numbers Reveal?
• How Did US Data Impact Markets?
• What’s Next for Luxury Stocks?
• Market FAQs

European markets, led by the CAC 40, staged a strong rebound on September 24, 2025, driven by upbeat PMI data and a rally in luxury stocks. Bank of America’s bullish note on the sector added fuel to the fire, while Kingfisher’s revised profit targets stole the spotlight in London. Meanwhile, Germany’s PMI outperformed expectations, but France’s private sector activity continued to contract. Here’s a DEEP dive into the day’s market-moving events.

Why Did European Markets Rally Today?

The CAC 40 climbed 0.54% to 7,872 points, while the Euro Stoxx 50 gained 0.69% as investors cheered the strongest Eurozone private sector growth in 16 months. Luxury giants LVMH and L’Oréal led the charge, surging 3.20% and 3.51% respectively after Bank of America analysts predicted a 3% quarterly revenue boost for European luxury brands. "The sector’s resilience continues to impress," noted a BTCC market strategist, "especially given the macroeconomic crosscurrents."

Which Stocks Were the Biggest Movers?

Kingfisher (+14.67%) dominated the FTSE 100 after raising its 2025/26 profit and free cash Flow targets, while Argan (-2.78%) stumbled in Paris after scrapping a planned €130 million asset sale. The DIY retailer now expects adjusted pre-tax profits at the upper end of its £480-540 million range, up from £528 million in 2024/25. "Kingfisher’s guidance revision shows confidence in the home improvement sector’s post-pandemic staying power," observed TradingView analysts.

What Do the PMI Numbers Reveal?

Germany’s composite PMI jumped to 52.4 in September (from 50.5), marking the fastest expansion since May 2024. France told a different story – its PMI fell to 48.4 (from 49.8), the sharpest contraction since April. The Eurozone overall edged up to 51.2, slightly beating forecasts. "Germany’s industrial engine is humming again," quipped one trader, "while France seems stuck in second gear."

How Did US Data Impact Markets?

Preliminary September PMIs disappointed: manufacturing slid to 52 (vs. 52.2 expected) and services dropped to 53.9 (vs. 54). The euro dipped 0.07% to $1.1792 ahead of Fed Chair Powell’s evening speech. "Traders are pricing in a ‘higher for longer’ US rate scenario," explained a BTCC analyst, "which could pressure European equities in coming sessions."

What’s Next for Luxury Stocks?

With LVMH hitting €523.20 and L’Oréal reaching €374.70, the sector shows no signs of slowing. Bank of America’s upgrade cited strong Asian demand and pricing power. "Luxury isn’t just surviving – it’s thriving," remarked a portfolio manager. "These brands have become inflation-proof status symbols."

Market FAQs

Why did Kingfisher shares surge?

Kingfisher stock soared 14.67% after raising its 2025/26 profit targets, citing strong first-half results and robust DIY market trends.

What caused Argan’s decline?

Argan fell 2.78% after canceling a planned €130 million asset sale that was meant to reduce debt, delaying its deleveraging timeline.

How significant is Germany’s PMI rebound?

Germany’s jump to 52.4 represents the fastest growth in four months, suggesting Europe’s largest economy may be turning a corner.