Following a flat opening, France’s equity benchmark CAC 40 experienced a downward drift on Tuesday morning as investors processed the latest inflation and PMI data, adopting a predominantly cautious approach. The index experienced a decline of 49.25 points, representing a decrease of 0.6%, settling at 8,162.25 shortly before noon. Legrand and Dassault Systemes experienced declines of 3.7% and 3.6%, respectively. Capgemini and Saint Gobain experienced a decline of just over 3%, while Bureau Veritas saw a decrease of 2.1%. BNP Paribas, Hermes International, Schneider Electric, Publicis Groupe, LVMH, Air Liquide, Accor, and Societe Generale experienced declines ranging from 1% to 1.6%.

Among the gainers, Orange and STMicroElectronics experienced increases of 2.6% and 2.5%, respectively. Michelin experienced an increase of 1.5%, whereas Thales and Engie recorded gains of 1.2% and 1.1%, respectively. The statistical office INSEE reported that inflation in France decreased to a seven-month low in December, attributed to a significant decline in energy prices, based on provisional estimates. The consumer price index recorded a year-over-year increase of 0.8%, subsequent to November’s 0.9% uptick. This represented the most sluggish pace observed since May. It was anticipated that prices would increase once more by 0.9%.

In December, EU harmonized inflation experienced an unexpected deceleration, decreasing to 0.7% from the previous month’s 0.8%. Forecasts indicated that the rate would remain steady at 0.8%. On a monthly basis, both the CPI and the HICP increased by 0.1% each, reversing the prior month’s decline of 0.2%. In December, consumer prices and harmonized prices were anticipated to increase by 0.2% each.

Data indicated that the HCOB France Composite PMI for December 2025 was adjusted slightly downward to 50.0, compared to a preliminary estimate of 50.1 and November’s figure of 50.4, reflecting a general stagnation in output. The manufacturing PMI registered at 50.7, an increase from November’s 47.8, whereas the Services PMI recorded a figure of 50.1 in December, a decline from November’s 51.4. The HCOB Flash Eurozone Composite PMI for December 2025 has been adjusted downward to 51.5, a revision from the initial estimate of 51.9 and a decline from November’s 30-month peak of 52.8. The Services PMI registered at 52.4, a decline from November’s 53.6, whereas the manufacturing PMI recorded a score of 48.8 in December, decreasing from 49.6 the previous month.