French stocks exhibited a mixed performance on Friday as investors adopted a cautious stance in light of escalating trade tensions. This caution was prompted by China’s warning of potential retaliation against new EU trade measures that may affect Chinese companies and products. Easing concerns regarding interest rates and expenditures on AI contributed positively to market sentiment.
Nvidia CEO Jensen Huang’s remarks supporting the financial stability of AI computing supplier CoreWeave Inc. contributed to an increase in technology stocks. Brent crude front-month futures declined to $104.91 a barrel before rebounding to $105.47, representing a decrease of nearly 0.5% from the prior close. The benchmark CAC 40, which edged down to 4,916.98 in early trades, was up 23.32 points or 0.28% at 7,958.02 nearly a quarter past noon.
- Renault experienced a rally of 3.75%. EssilorLuxottica experienced an increase of 3.1%, whereas Thales, Stellantis, and Pernod Ricard saw rises of 2.9%, 2.7%, and 2.5%, respectively.
- Airbus experienced an increase of 1.7%. The aerospace company has announced the securing of an order for 75 A320neo Family aircraft from Aviation Capital Group.
- Capgemini, Dassault Systemes, Publicis Groupe, Bouygues, Accor, BNP Paribas, ArcelorMittal, Legrand, Euronext, and Hermes International experienced increases ranging from 0.5% to 1.3%.
- Schneider Electric, TotalEnergies, Eurofins Scientific, Sanofi, LVMH, and L’Oreal experienced declines ranging from 0.5% to 0.9%. STMicroelectronics experienced a slight decline.
In economic news, the trade balance of the euro area exhibited a deficit of EUR 16.1 billion in August, contrasting with a surplus of EUR 10.7 billion recorded in July. In the corresponding period of the previous year, the deficit stood at EUR 1.7 billion. Exports of goods rose by 9.9% compared to the previous year, outpacing the 8.8% increase observed in July. Concurrently, the growth rate of imports experienced a significant increase, rising to 16.7% from the previous 9.1%.
Eurozone inflation increased to 3.8% in September, reaching its highest level since September 2023, up from 3.2% in August. The rate aligned with the preliminary estimate released on October 2. Core inflation, excluding energy, food, alcohol, and tobacco, experienced a modest increase to 2.5%, as anticipated, up from 2.4% in the preceding month. In the latest data release, the harmonised index of consumer prices experienced a month-on-month increase of 0.6%, consistent with the preliminary estimate.
