
Following a day of reaching a 7-month peak, the benchmark index of the French stock market, CAC 40, has retreated into negative territory. This decline was particularly pronounced among bank stocks, which experienced significant losses on Friday, driven by apprehensions regarding the stability of U.S. credit markets. The CAC 40 experienced a decline of 60.70 points, reflecting a decrease of 0.74%, settling at 8,127.89. Concerns regarding U.S.-China trade tensions, along with the persistent conflict in Ukraine, are exerting pressure on sentiment.
The temporary reprieve afforded to the newly formed French government, following Prime Minister Sébastien Lecornu’s survival of two no-confidence votes on Thursday, serves to mitigate the downside risks in the market. The DAX, having previously fallen to 22,682.63, was observed down 497.74 points or 2.05% at 23,775.19. Concerns regarding the stability of the U.S. banking sector are adversely impacting the shares of lenders. Zions Bancorporation, a lender based in Utah, announced it would write off $50 million on two loans. Meanwhile, Western Alliance, headquartered in Phoenix, indicated that it had initiated legal proceedings concerning a troubled loan valued at $100 million.
Societe Generale and BNP Paribas have experienced declines of 5.2% and 3.9%, respectively. Credit Agricole is experiencing a decline of approximately 2.5%. Thales has experienced a decline of 3.7%, whereas STMicroElectronics, Airbus, Legrand, Safran, and Schneider Electric have seen decreases ranging from 2.1% to 3%. AXA, Saint Gobain, ArcelorMittal, Capgemini, Eurofins Scientific, Kering, and Veolia Environment are experiencing a decline as well.
EssilorLuxottica has experienced a significant increase of nearly 12% following the announcement of third-quarter revenues amounting to 6,867 million euros, reflecting an 11.7% rise compared to the previous year. Pernod Ricard is experiencing an increase of 1.9%, while Danone is up by 1.4%. Orange has experienced an increase of 0.6%, whereas Hermes International and Carrefour have seen slight gains.