CAC 40 Bounces Back but Still Struggles

CAC 40 Updates

Following an initial decline that saw the benchmark CAC 40 drop by more than 100 points, the French market rebounded and momentarily surpassed the neutral threshold on Friday. Concerns regarding elevated technology valuations have reemerged, notwithstanding the robust earnings report and update from US chipmaker Nvidia. The market faced challenges early on due to uncertainty surrounding the Federal Reserve’s interest rate decision for December.

Nonetheless, preliminary estimates indicating growth in the French services sector contribute positively to market sentiment. The CAC 40 experienced a decline to 7,875.87 at the outset, subsequently rising to 7,982.08 before settling at 7,958.92, reflecting a decrease of 22.10 points or 0.28% from the prior close. Where as –

  • Pernod Ricard is experiencing an increase of 3.75%, while Euronext is showing a gain of 3.5%.
  • L’Oreal has increased by nearly 2%, whereas Capgemini, Kering,
    Stellantis, and Vinci have risen between 1.3% and 2%.
  • Dassault Systemes, Publicis Groupe, Hermes International, Orange, Edenred,
    Danone, and AXA are experiencing gains of 1 to 1.25%.
  • ArcelorMittal, Thales, and Legrand have experienced declines ranging from 2% to 2.25%.
  • Schneider Electric, Societe Generale, Safran, EssilorLuxottica, and
    STMicroElectronics are experiencing a notable decline.

In November, France’s private sector economy exhibited a general stabilization, propelled by a renewed increase in services activity, as indicated by a survey. The HCOB composite output index increased unexpectedly, reaching a 15-month peak of 49.9 in November, up from 47.7 in October. The reading was recorded at 48.1. The service sector experienced its initial growth in activity in 15 months, as indicated by the PMI score of 50.8 in November, an increase from 48.0 the previous month.

In the meantime, the factory PMI declined unexpectedly to 47.8, down from 48.8 in the previous month. The score was projected to increase to 49.0. Data indicated a decline in French manufacturing confidence in November, following an improvement in the preceding month. The manufacturing confidence index decreased to 98.0 in November, down from 100.9 in October, which had marked the peak since March 2024. The reading was anticipated to decline to 100.