CAC 40 Edges Higher as Earnings Offset Weak PMI Data

STMicroElectronics

French stocks exhibited a varied performance on Thursday as investors responded to a series of corporate earnings reports and the most recent regional economic data, while also monitoring the ongoing developments in the Middle East conflict. The benchmark CAC 40 experienced an increase of 9.25 points, reflecting a rise of 0.11%, reaching a level of 8,165.68 recently. L’Oreal experienced an increase of nearly 8% following the announcement of its most rapid quarterly growth in two years. The company announced first-quarter sales amounting to 12.15 billion euros, reflecting a 3.6% increase from the 11.73 billion euros recorded in the previous year. On a comparable basis, revenues increased by 7.6% for the quarter.

  • STMicroelectronics experienced a 6.5% increase following robust quarterly results.
  • Dassault Systemes experienced an increase of 4.5%.
  • Orange experienced a 3.2% increase following the upward revision of a crucial earnings metric for the full year.
  • Sanofi experienced an increase of nearly 3% following the announcement of revenue and operating income figures for the first quarter that surpassed expectations.
  • Renault experienced an increase of over 1% following the announcement that its Q1 sales surpassed expectations.
  • Aerospace and defense group Safran experienced a 1 percent increase following first-quarter revenue that exceeded expectations.
  • Bureau Veritas experienced an increase of 1.3%.
  • Euronext, TotalEnergies, Bouygues, Hermes International, and Stellantis recorded modest gains.
  • EssilorLuxottica experienced a decline of 4.7%.
  • Capgemini experienced a decline of approximately 3%, whereas ArcelorMittal, Societe Generale, and BNP Paribas saw losses ranging from 2.1% to 2.7%.
  • Carrefour, Eurofins Scientific, Legrand, Kering, Accor, Credit Agricole, and Schneider Electric experienced declines ranging from 1.4% to 2%. Eiffage, Airbus, AXA, and LVMH experienced significant declines.

In April, France’s private sector experienced its most significant contraction since early 2025, primarily due to a decline in the service sector, despite manufacturing output expanding at its fastest rate in over four years, according to data. The flash composite output index declined to a 14-month low of 47.6 in April, down from 48.8 in March. The score was projected to decline to 48.6. The services Purchasing Managers’ Index declined unexpectedly to 46.5 in April, down from 48.8 the previous month. The reading was observed at 48.5.

The manufacturing PMI reached a notable 47-month high of 52.8 in April, an increase from 50.0 in March. The score exceeded the forecast of 49.5.The service economy has experienced a decline attributed to a reduced propensity to spend, a common outcome of uncertainty, which has subsequently led to a decrease in overall business activity levels, according to Economist Joe Hayes. In March, Europe experienced a notable increase in new car registrations, primarily fueled by the rising demand for battery electric vehicles, according to the European Automobile Manufacturers’ Association. In March, car sales experienced a notable increase of 12.5% year-over-year, reaching 1.158 million units, driven primarily by the growth in electric and hybrid vehicles.