CAC 40 falls by 0.55% in the late afternoon, Stellantis drops nearly 4%

Stellantis and Pernod Ricard Heavily Penalized

Stellantis is facing the sharpest decline of the session, with the automaker's stock plummeting 3.66% to 9.54 euros. This drop comes amid a particularly challenging period for the Franco-Italian group. The stock continues its downward trajectory that began in the spring of 2024 when it was still trading around 27 euros. Throughout 2024, the group encountered numerous difficulties, burdened by inventory accumulation in the United States, a crucial market for its profitability, and weak sales. These operational issues resulted in the company's market capitalization halving within a few months. The release of disastrous 2024 financial results at the end of February 2025—with net profit plunging 70% and operating margin collapsing to 5.5%—further intensified pressure on the stock. For 2025, Stellantis is targeting an operating margin of around 5%, significantly below the market’s initial expectations and far lower than the performance under Carlos Tavares, who resigned at the end of November 2024. This disastrous stock sequence pushed the share price below the 10 euro mark. Pernod Ricard, the second-largest decline of the session, fell 2.94% to 73.96 euros. The French spirits giant has been navigating turbulence for several quarters due to slowing demand in its key markets. Consumption of premium spirits, a historically strong segment for the group, has weakened notably in the US and China. Last February, Pernod Ricard lowered its 2025 forecasts, citing difficult market conditions and anticipating a single-digit decline in organic revenue. In its first-quarter results for 2025/2026, the group confirmed these challenges with a 7.6% drop in organic sales. Analysts remain cautious about the stock, with several downgrading their recommendations. International trade tensions and tariffs also weigh on the group's outlook, which has estimated the annual impact on its earnings to be 80 million euros. Despite some observers finding its valuation attractive and a maintained dividend, the stock struggles to gain traction in an uncertain macroeconomic environment.

Some stocks stand out, led by Kering

Against the general trend, Kering takes the top spot in the rankings with a gain of 0.73% to 304.75 euros. The luxury giant has been experiencing renewed investor interest in recent weeks, with the stock rebounding after hitting historical lows in the fall. Despite disappointing 2024 results published in February 2025—where net profit fell by 62% and overall revenue declined by 12%—the market now seems to appreciate the restructuring efforts undertaken by the group. The appointment of Francesca Bellettini as head of Gucci, the group's flagship brand, in September 2024 is seen as a sign of renewal. Additionally, the stock's valuation has become particularly attractive with a P/E ratio around 14, significantly lower than the luxury sector average, which exceeds 33. The operating free cash flow, up 7% to 3.6 billion euros, demonstrates the group's financial solidity despite operational challenges. Technically, Kering's stock appears to be breaking out of a consolidation range, potentially paving the way for further gains in the coming weeks. TotalEnergies is up 0.45% to 56.06 euros, benefiting from a relatively favorable climate for energy stocks. The oil giant reported solid third-quarter 2025 results at the end of October, with revenues of $43.8 billion and EBITDA of $10.3 billion. The company confirmed its net investment outlook between $17 and $17.5 billion for 2025, while anticipating an improvement in hydrocarbon production in the fourth quarter. The company also maintains its share buyback program and generous distribution policy, elements that reassure yield-oriented investors. Accor advances 0.44% to 48.27 euros. The hotel group continues to benefit from the recovery in the tourism sector and business travel. Air Liquide edges up 0.18% to 159.78 euros, as the industrial gases specialist continues its stable trajectory, driven by solid fundamentals and medium-term growth prospects. Finally, Legrand inches up 0.16% to 125.95 euros, taking advantage of its defensive positioning in a sluggish market. The specialist in electrical and digital infrastructure recently confirmed its annual targets for 2025 and continues its share buyback program, a sign of confidence in its ability to generate cash.

A Lackluster Market Context Ahead of the Holiday Season

The trading session on Monday, December 22 is occurring with particularly low trading volumes, typical for this time of year. Many managers and traders have already taken their holidays ahead of Christmas, significantly reducing market liquidity. European stock markets will also close partially on Wednesday at midday for the long Christmas weekend, and Wall Street will experience a partial closure as well. This setup suggests that fluctuations observed this week should remain limited, as investors generally avoid taking significant positions in such a thin market. Nonetheless, the CAC 40 ended the previous week on a positive note with a 1% gain, coming within less than 2% of its historical high reached on November 13. This performance reflects the resilience of the Paris market in an environment marked by caution. Investors continue to monitor interest rate trajectories on both sides of the Atlantic. While the US Federal Reserve recently cut rates, Jerome Powell's comments were interpreted as relatively accommodative by the markets. Meanwhile, the European Central Bank is continuing its monetary easing cycle, which supports risk assets in the eurozone. In the coming days, economic and market news will largely take a back seat. Macro-economic data releases will be rare, and volumes are expected to remain weak until the start of January. However, investors can look to the early 2026 calendar, which promises to be busy with the release of fourth-quarter 2025 results from many CAC 40 companies. The stakes will be numerous: confirmation or not of Stellantis' recovery, continued stabilization at Kering, evolution of demand for spirits at Pernod Ricard, and more broadly the ability of French companies to maintain their margins in an uncertain geopolitical and commercial context. Until then, caution is expected to prevail in the markets, with limited movements and contained volatility. The CAC 40 is likely to fluctuate within a narrow range around its current levels, awaiting a more pronounced catalyst at the beginning of next year.