France’s equity benchmark CAC 40 declined on Friday as investors adopted a cautious stance, responding to corporate earnings reports and preliminary data indicating a contraction in the nation’s services sector activity for the month of October. Concerns regarding fiscal challenges and apprehensions about ongoing tensions in the Middle East, coupled with high oil prices, negatively impacted sentiment.
Oil prices increased as tensions in the Middle East continue to persist. Brent crude front-month futures rose to $114.72 a barrel, subsequently retracting to approximately $114.33, yet remaining over 1% higher than the previous close. The CAC 40 experienced a decline of 52.25 points, reflecting a decrease of 0.67%, settling at 7,759.01 recently.
- Kering experienced a decline of nearly 14%, reaching a level not seen in over 52 weeks, following third-quarter revenue figures that remained unchanged compared to the previous year and reflected a decrease of approximately 1% on a like-for-like basis.
- Despite the company exceeding third-quarter revenue growth expectations, shares of jet engine manufacturer Safran fell nearly 9% amid worries regarding a deceleration in aftermarket growth.
- Accor and Hermes International experienced declines of 3% and 2.8%, respectively, with the latter’s downturn attributed to disappointing quarterly results. STMicroElectronics declined by 2.3%.
- Capgemini, ArcelorMittal, Renault, Bureau Veritas, Airbus, Stellantis, Euronext, AXA, Orange, LVMH, Publicis Groupe, Schneider Electric, Engie, and Sanofi experienced declines in the range of 1% to 2%, whereas Pernod Ricard saw a slight increase.
- L’Oreal experienced an increase of nearly 5%, supported by robust sales figures for the third quarter.
- TotalEnergies moved up 2.3% thanks to higher oil prices. EssilorLuxottica, Saint Gobain, and Carrefour experienced an increase of 1% to 1.2%.
- Catering and food services group Sodexo experienced a 7% increase following the announcement of full-year revenue that surpassed expectations.
Survey results from S&P Global indicated that France’s private sector activity experienced a contraction in October, representing a shift from the growth rebound observed in September. The flash composite output index decreased to a four-month low of 48.4 in October, down from 51.1 in the preceding month.
Economists had projected a modest decline in the index to 50.5. Moreover, a score below the neutral threshold of 50.0 signifies contraction. The services Purchasing Managers’ Index recorded a value of 48.4, a decline from the 51.2 observed in September. Simultaneously, the manufacturing PMI reached an 11-month low of 49.3, down from 50.6 in the previous month.
