The benchmark CAC 40 experienced a decline of 75.59 points, reflecting a decrease of 0.95%, standing at 7,858.77. French equities are experiencing a notable decline on Tuesday, influenced by political uncertainties and ongoing trade tensions between the U.S. and China. Market participants are anticipating the release of quarterly earnings reports from prominent U.S. banking institutions later today. The ongoing political crisis in France sees President Emmanuel Macron firmly dismissing calls for his resignation while vehemently criticizing his adversaries. Macron’s current administration faces the prospect of two no-confidence motions that may lead to its downfall by the week’s conclusion.

U.S. Treasury Secretary Scott Bessent expressed his expectation that Presidents Donald Trump and Xi Jinping will convene, while cautioning that all avenues for responding to China’s decision to restrict rare earth exports remain viable. China’s commerce ministry stated its willingness to engage in discussions; however, it emphasized that the U.S. cannot pursue dialogue while simultaneously issuing threats of new measures. Beijing has reportedly indicated that the expansion of restrictions by Washington on Chinese firms in late September heightened tensions, prompting it to further tighten its control over critical minerals.

Michelin is experiencing a decline of over 9% following the company’s revision of its annual targets in light of a deteriorating economic landscape. The company anticipates operating income in the range of 2.6 to 3 billion euros, a decrease from the prior estimate exceeding 3.4 billion euros. Stellantis is experiencing a decline of approximately 4.2% in response to a rating downgrade issued by Moody’s. Kering, Schneider Electric, ArcelorMittal, and Schneider Electric have experienced declines ranging from 2% to 2.2%.

Bureau Veritas, STMicroElectronics, Legrand, LVMH, Thales, Renault, Airbus, Saint Gobain, Safran, and EssilorLuxottica have experienced declines ranging from 1 to 2%. Danone and Orange are experiencing increases of 1.1% and 1%, respectively. Publicis Groupe has increased by nearly 1% following its outperformance in Q3 and an upward revision of its full-year guidance. Carrefour, Sanofi, Engie, Societe Generale, and Vinci have recorded modest gains.