The French stock market’s key index CAC 40 experienced an upward movement on Friday, building on gains from the prior session, as investors processed regional economic data and the latest earnings reports. Reports indicating that U.S. lawmakers have achieved a bipartisan funding agreement to prevent a government shutdown have positively influenced sentiment. In the interim, reports indicate that President Donald Trump is poised to announce his selection of former Federal Reserve official Kevin Warsh to succeed Jerome Powell as the chair of the central bank.

The CAC 40 experienced an increase of 42.07 points, reflecting a rise of 0.52%, reaching a level of 8,113.43 approximately thirty minutes after noon.

• Eurofins Scientific experienced an increase of 2.3%, Dassault Systemes saw a rise of 2.25%, and Capgemini recorded an advancement of 2.1%.
• STMicroElectronics, Societe Generale, EssilorLuxottica, Accor, and Vinci experienced an increase of 1% to 1.5%.
• Pernod Ricard, Safran, Kering, AXA, Schneider Electric, Bouygues, BNP Paribas, Engie, Sanofi, Stellantis, and Veolia Environment recorded modest increases.
• Carrefour experienced a decline of 1.1%. Meanwhile, Air Liquide, Airbus, Saint Gobain, L’Oreal, Renault, and Danone recorded slight losses.

Recent economic data indicates that the French economy experienced a deceleration in growth as the year drew to a close, attributed to political and fiscal uncertainties that have negatively impacted both investment and consumption. In the fourth quarter, gross domestic product experienced a quarterly growth of 0.2%, as reported. The rate aligned with projections, following the third quarter’s 0.5% growth and the 0.3% increase observed in the second quarter. In 2025, overall economic growth decelerated to 0.9%, a decline from the 1.1% recorded in 2024. The outlook for 2026 appears moderately favorable, with GDP growth anticipated to approximate 1%. According to economist Charlotte de Montpellier, growth may attain 1.1% in the coming year; however, political and fiscal risks continue to be significant.

Another report from INSEE indicated that household consumption in France experienced a decline of 0.6% in December, which is a deterioration compared to November’s decrease of 0.3%. In a separate report, the INSEE indicated that domestic producer prices experienced a decline of 2% in December compared to the same month last year, a more pronounced decrease than the 1.5% drop recorded in November. Concurrently, the monthly growth moderated to 0.2%, a decline from the 2.8% recorded in November. According to Eurostat, the unemployment rate in the euro area decreased to 6.2% in December, contrary to expectations that it would hold steady at 6.3%. The youth unemployment rate experienced a minor decline, decreasing to 14.3% from the previous 14.4% in November. The unemployment rate across the European Union remained unchanged at 5.9% in December.