French stocks exhibited a varied performance on Friday morning as investors responded to corporate earnings reports and the most recent economic data releases. Data indicating an unforeseen contraction alongside elevated crude oil prices has negatively impacted sentiment. Brent crude front-month futures increased to $114.07 a barrel before declining to approximately $112.60, representing a rise of up to 1.6% from the previous close.
The benchmark CAC 40, oscillating between 7,957.61 and 7,992.00, recorded an increase of 4.40 points or 0.05% at 7,974.40 recently.
- Sanofi experienced a notable increase of 5.2% following the announcement of third-quarter earnings that exceeded expectations, alongside an upward revision of its fiscal year 2026 outlook.
- Danone experienced an increase of 2.7%, whereas EssilorLuxottica and Pernod Ricard saw gains of 2.3% and 2%, respectively.
- Capgemini experienced a gain of 1.7%. The IT consulting group has revised its financial targets for 2026 following a reported 12% increase in third-quarter revenue.
- Eurofins Scientific, Hermes International, Air Liquide, and L’Oreal experienced increases ranging from 1.3% to 1.7%. Orange, TotalEnergies, Publicis Groupe, Dassault Systemes, LVMH, Kering, and Carrefour experienced upward movement.
- Stellantis, STMicroelectronics, and Schneider Electric experienced declines of 3.4%, 3.3%, and 3%, respectively.
- Legrand experienced a decline of 2.3%, while Societe Generale saw a decrease of 2%.
- Credit Agricole experienced a decline of 1.6%, even as it reported an increase in profit for the third quarter.
- BNP Paribas, ArcelorMittal, Safran, Engie, Bouygues, Thales, Accor, Airbus, and Unibail Rodamco experienced declines ranging from 1% to 1.7%.
Preliminary data from the statistical office INSEE indicated that the French economy experienced an unexpected contraction in the third quarter, driven by weak investment and exports, alongside elevated borrowing costs and social unrest that are obscuring the economic outlook. The data indicated that France’s gross domestic product experienced a decline of 0.1% on a sequential basis following a period of stagnation in the second quarter. Economists predicted a 0.1% economic growth. The expenditure-side of GDP indicated that foreign trade and the decline in gross fixed capital formation played a role in the contraction observed in the third quarter.
France’s annual inflation rate increased to 3.4% in October, up from 3.1% in September and exceeding expectations of 3.2%, based on preliminary estimates. This represented the peak measurement since December 2023. EU annual inflation surged to 3.8% from 3.4%, with monthly HICP climbing 0.4% after a 0.3% drop in September. French domestic producer prices jumped 1.7% in September, up from 1% the month before. This is the highest reading since March. Producer prices surged 6.8% year-over-year, up from a revised 4.9% in August, reaching the highest point since March 2023.
