CAC 40: Banks on Fire as Index Hits New Record Above 8,140 Points

European Stock Markets Counter Asian Trend

The Paris session is unfolding in a positive atmosphere following the U.S. midterm elections. The Democrats have won both chambers of Congress, dealing a political setback to Donald Trump. In Asia, stocks linked to artificial intelligence experienced significant sales amidst concerns about the future of American data centers.

European markets, on the other hand, took a different direction. The movement is broad in Paris: 33 stocks in the CAC 40 are advancing, compared to only 6 declining and one remaining stable. Following this trend, the SBF 120 is up 1.5% at 6,167.68 points. In Germany, the DAX is gaining 1.55% at 26,264.82 points, and the STOXX 600 is up 1.46%, while London's FTSE 100 is rising by 1.23%. On Wall Street, the previous day's results were more mixed: the S&P 500 closed up 0.36% and the Nasdaq 100 rose by 0.68%, but the Dow Jones fell by 0.38%.

Financial Stocks Lead, Luxury Follows

Banks are largely leading the rankings today. BNP Paribas jumps 5.05% to 92.03 euros, driven by a revised target price increase from Barclays, from 100 to 111 euros. The bank also announced the early repayment of 250 million Australian dollars in Tier 2 bonds. Société Générale rises 4.94% to 64.59 euros, after announcing the early repayment of a social impact bond by December. Crédit Agricole climbs 3.5% to 15.55 euros, as the green bank confirmed an early repayment at par of sterling bonds at the end of November and revealed, alongside the European Investment Bank, a 400 million euro package for SMEs and mid-caps in the defense sector.

At the top of the index, ArcelorMittal soars 5.06% to 56.9 euros, ahead of the release of its third-quarter financials, for which analysts are expecting an EBITDA of 1,972 million dollars. The luxury sector also contributes to the movement, with Kering up 4.08% to 187.6 euros, as the group launches its first « Water Resilience Lab » in the Arno River basin, in Tuscany.

Thales and the automotive sector temper the rise

The few declines of the session are led by Thales, which is down 2.83% to 226.4 euros. The defense group had secured a contract with the US Navy for mine countermeasures, potentially worth up to $196.2 million with options. Rothschild & Co Redburn downgraded its rating to « neutral » with a price target of 255 euros, while CIC Market Solutions maintains its « buy » recommendation, targeting 305 euros.

The automotive sector also remains under pressure: Stellantis loses 1.58% to 4.02 euros, following October registration figures that showed the automaker's registrations fell by 4.70% year-on-year in the French market, contrary to a growing market trend. Euronext slips 1.06% to 167.7 euros, following the announcement that David Knibbe, current CEO of NN Group, is a likely candidate to succeed Stéphane Boujnah as head of the stock market operator in 2027.

Schneider Electric and EssilorLuxottica complete the lower end of the ranking, with more moderate declines. In the background, the French budget trajectory remains under scrutiny, after Fitch downgraded its outlook on the sovereign rating from « stable » to « negative, » with ten-year OAT yields close to 4.94%.