CAC 40 Earnings Hit 5-Month Peak, Easing AI Worries

CAC Futures Updates

France’s equity benchmark CAC 40 reached a new 5-month high on Friday as investors responded favourably to the latest earnings updates and other corporate news. Easing concerns regarding the implications of AI infrastructure expenditure has managed to overshadow apprehensions related to tensions in the Middle East. Investors also analysed the inflation data from France and the Eurozone. The CAC 40 increased by 86.19 points, reflecting a rise of 1.02%, reaching a level of 8,571.83 just before 1 PM. Saint-Gobain experienced a significant increase of nearly 9% following the affirmation of its outlook for 2026.

Looking ahead for fiscal 2026, the company maintains its expectation of an EBITDA margin exceeding 15%, amidst a contrasting macroeconomic environment and an uncertain geopolitical landscape. Engie experienced a 5% increase following the upward revision of its full-year guidance, attributed to stronger-than-anticipated earnings in the first half of the year. Engie’s net income increased by 13.7% to 3.323 billion euros in the first half, compared to 2.923 billion euros from the previous year. Earnings per share increased to 1.28 euros, up from 1.16 euros in the previous year. Euronext experienced an increase of 5.6%.

  • STMicroelectronics, Schneider Electric, and Credit Agricole experienced increases of 3% to 3.3%. Legrand and Stellantis experienced increases of 2.8% and 2.7%, respectively.
  • Sanofi, Thales, EssilorLuxottica, Airbus, Societe Generale, Capgemini, Michelin, Safran, ArcelorMittal, and BNP Paribas experienced significant upward movement.
  • Orange experienced a decline of approximately 4.3%. Bouygues experienced a decline of 2.1%, whereas L’Oreal, Veolia Environment, and Danone saw losses ranging from 1.7% to 1.9%.
  • Accor, Hermes International, Dassault Systemes, and Carrefour experienced declines ranging from 0.9% to 1.2%. Kering and Publicis Groupe experienced modest declines.

In economic news, French inflation accelerated in July, driven by increased prices in energy and services, according to a preliminary estimate from the statistical office INSEE. Consumer price inflation increased to 2.1% in July, up from 1.8% in June. The rate was anticipated to stay steady at 1.8%. Likewise, inflation based on the harmonised index of consumer prices advanced more than expected to 2.4% from 2% in June. The index was anticipated to increase by 2.1%. Consumer prices experienced a month-on-month increase of 0.6%, recovering from a decline of 0.3% observed in June. The HICP also experienced a growth of 0.6%, which partially countered the 0.3% decline observed in the preceding month.

Another data from the statistical office INSEE indicated that producer prices in the domestic market experienced a deceleration, growing at a rate of 2.6% year-on-year in June, subsequent to a 3.1% increase in May. On a monthly basis, the decline in producer prices accelerated to 0.6%, up from 0.2% in May. Flash data from Eurostat indicated that inflation within the Eurozone rose in July, driven by increases in energy and services costs, climbing to 2.9% for the month, up from 2.8% in June. The rate aligned with expectations. Core inflation, which omits energy, food, alcohol, and tobacco, increased to 2.5% from 2.4% in the preceding month. In July, the harmonised index of consumer prices experienced a monthly increase of 0.2%.