The 2023 stock market year closed with new records and a +16.5% performance for the Paris index, in line with the average for European markets. The tech‑heavy US market grew significantly. The Nasdaq, up 43.4%, even had its best year since 1999, mainly on the anticipation of an upcoming rate cut by the Federal Reserve in the United States. A handful of securities stood out this year, starting with the “Magnificent Seven.” Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta and Tesla have taken Wall Street to new heights. Under the effect of investors’ enthusiasm for artificial intelligence, they rose by more than 75% this year while the S&P 500 equally weighted index gained only 12%.
On the macroeconomic level, two factors contributed to the increase in stock market indices in 2023.
The decline in inflation has been confirmed and amplified. After having exceeded 10% on an annualized basis, inflation fell back to 2.4% in the euro zone in November. In the United States, the increase in consumer prices reached 3.1%, far from its peak of more than 9%, unprecedented since the 1980s. The movement was powerful enough to allow the Federal Reserve and the European Central Bank to pause their monetary tightening cycle after ten or so rate hikes. Long‑term interest rates have returned to their levels of the beginning of the year in the United States and Europe. With the rebound in indices in the last weeks of 2023, the markets are now anticipating a loosening of monetary policy in 2024.
The US economy is the last driver of global growth. Thesharp increase in the Federal Reserve’s key interest rates,which have peaked since the end of July at their highestlevel since March 2001 at 5.5%, did not dampen theunexpected strength of the US economy. The slowdown atthe beginning of the year was only temporary, with anannualized growth rate that approached 5% in the thirdquarter in the United States.
The STOXX 600 Media index for European media increased by 22% in 2023 compared to +11% for the STOXX 600 Europe. The sector was mainly driven by the professional publishing sector (RELX: +33%, Wolters Kluwer: +30%). The media sector benefited from the themes that affected all markets, namely the prospect of lower interest rates and the good performance of the European economy. Publicis posted the best stock market performance in the sector in 2023, with an increase of 41.4%. The outperformance is even more significant compared to other communications consultancy groups. The share price of Omnicom was up by 6%, that of Interpublic is down by 2%, WPP by 8% and Dentsu by 13%. In 2023, Publicis became the communications consulting sector's leading market capitalization. Publicis shares benefited from very good operational execution quarter after quarter. The Groupe thus delivered better than initially expected financial performance, while its competitors posted lower performance than those announced at the beginning of the year.
Publicis Groupe’s financial communication is based on the principle of providing precise, transparent, true and fair information on the Groupe’s situation to all financial markets within the framework of the current texts, standards and procedures in France: the Financial Security Law and the IFRS (International Financial Reporting Standards). The Publicis Groupe Investor Relations Department maintains a close, ongoing dialogue with both the brokerage company and investment fund analysts. Publicis Groupe’s financial communications with institutional investors is reflected in the organization of meetings in the world’s major financial markets, and by the participation of Groupe representatives at investor conferences.
In 2023, Publicis Groupe met with around 1,200 institutional investors at roadshows and industry investor conferences.
