French Stocks Rally as Political Outlook Improves, LVMH Soars

French stocks rallied as investors bet Prime Minister Sebastien Lecornu’s new government will survive upcoming no-confidence votes, with the market also getting a boost from LVMH’s earnings.

The benchmark CAC 40 Index rose as much as 2.7%, the most since April, led by gains in LVMH Moët Hennessy Louis Vuitton SE whose sales unexpectedly returned to growth in the third quarter. Its shares soared as much as 14%, the most since 2001.