Following an initial uptick in early trading, propelled by robust purchasing in the financial and technology sectors, the French stock market subsequently retraced its gains and fell into negative territory on Tuesday. The market experienced an early uptick, supported by a reduction in geopolitical tensions, a rebound in commodities markets, and data indicating a smaller-than-anticipated rise in French inflation, which bolstered overall sentiment. Market participants are anticipating the forthcoming monetary policy announcement from the European Central Bank, scheduled for Thursday. The ECB is anticipated to maintain the current interest rates without alteration. The emphasis will be on the bank’s perspectives regarding growth, as well as insights into potential future policy actions.

The benchmark CAC 40, which advanced to 8,234.50 earlier in the session, was down 13.94 points or 0.17% at 8,167.23 approximately thirty minutes past noon.

• Credit Agricole experienced an increase of 1.75%.
• Michelin experienced an increase of 1.5%, whereas Schneider Electric, ArcelorMittal, Danone, Eiffage, Engie, and Safran saw gains ranging from 0.8% to 1.2%.
• Societe Generale, Danone, Vinci, Unibail Rodamco, Veolia Environment, Legrand, AXA, BNP Paribas, and Thales experienced moderate gains.
• Dassault Systemes and Renault experienced declines of 3.3% and 3.2%, respectively.
• Bureau Veritas, STMicroElectronics, L’Oreal, Euronext, Stellantis, Accor, and LVMH experienced declines ranging from 1% to 1.7%.

Publicis Groupe experienced a decline of 8.8% following the announcement of a full-year profit that fell compared to the previous year. The company’s net income was reported at EUR1.653 billion, translating to EUR6.52 per share. This stands in contrast to EUR1.660 billion, or EUR6.55 per share, from the previous year. Capgemini experienced a decline of 5.6%. The company disclosed on Monday its intention to sell its US subsidiary following a dispute regarding a $365 million contract with the US immigration agency ICE, which involves supplying tools for the identification of foreign nationals.

Data indicated that France’s annual inflation rate decelerated to 0.3% in January 2026, marking the lowest level since late 2020. This figure represents a decline from 0.8% in December and falls short of the anticipated 0.6%, based on preliminary estimates. On a month-on-month basis, the CPI decreased by 0.3%, reversing the 0.1% increase observed in December and surpassing expectations of a 0.1% decline. In terms of the EU-harmonised Consumer Price Index, there was a year-on-year increase of 0.4% in prices, while a month-on-month decrease of 0.4% was observed.