CAC 40 Hovers Around Break-Even Mid-Session as Airbus and Sanofi Limit Decline

Airbus and Sanofi bolster the Paris stock market

On the rise, Airbus leads with a 0.45% increase to 196.60 euros, buoyed by encouraging commercial news. The aerospace manufacturer delivered its first A350-1000 to Philippine Airlines on December 22, marking the start of a nine-unit order and confirming the ramp-up of this program despite ongoing supply chain constraints affecting the sector. On December 11, Airbus and its partners successfully conducted wake energy retrieval tests over North Atlantic flights, showcasing the group's technological innovation in optimizing energy efficiency.
Following in the footsteps of Toulouse's giant, Stellantis gains 0.41% to 9.49 euros, and Orange climbs 0.39% to 13.98 euros. The telecommunications group benefits from reassuring financial outlooks, with 2025 targets confirmed during the release of its third-quarter results, including an EBITDAaL growth of at least 3.5% and an organic cash flow from telecom activities of at least 3.6 billion euros. Sanofi also shows a positive performance with a gain of 0.33% to 81.85 euros. The pharmaceutical company recently announced an agreement with the US government to reduce the average price of certain drugs for Medicaid programs by 61%, while committing to invest 2.3 billion dollars in bioproduction in the United States. This voluntary agreement, reached with the administration of President Donald Trump, also includes a three-year period without applying Section 232 tariffs on products imported by Sanofi. Additionally, on December 23, Dupixent received marketing authorization in Japan for treating bronchial asthma in children aged 6 to 11 with severe or refractory forms, enhancing the blockbuster's portfolio in a strategic pediatric indication.
Finally, LVMH sees a modest rise of 0.29% to 629.50 euros, as the luxury sector remains under pressure.

Technology and industrial stocks weigh on the index

Conversely, Capgemini experienced the steepest decline of the day with a drop of 1.52% to 142.25 euros, affecting the IT services sector along the way.
Renault fell by 1.25% to 35.63 euros, weighed down by ongoing uncertainties surrounding the European automotive sector. The automaker had reaffirmed its financial outlook for 2025 at the end of October, targeting an operating margin of around 6.5% and a projected free cash-flow between 1.0 and 1.5 billion euros.
Publicis Groupe declined by 1.02% to 87.54 euros, despite solid quarterly results published in October. At that time, the communications giant had raised its 2025 organic growth target to the high end of the range at 5.5%, while confirming an operating margin slightly above 18% for the year. EssilorLuxottica slipped 0.84% to 270.30 euros, while ArcelorMittal dropped 0.83% to 38.02 euros. The steel manufacturer is suffering from a challenging environment for steel, amid a slowdown in global demand and pressure on margins. These declines reflect a certain caution among traders ahead of the market close on Wednesday, December 24, in the early afternoon, as the Paris Stock Exchange is set to close shortly after 2 p.m. in accordance with the holiday schedule.

A Lackluster Year-End for European Markets

Tuesday's session is set within a week shortened by the year-end holidays, characterized by the absence of major economic catalysts likely to drive strong market dynamics. On Monday, the Paris Stock Exchange had already ended with a slight decline of 0.37% at 8,121.07 points, concluding an uneventful session. Since the beginning of the year, however, the Parisian index has shown a gain of over 10%, a performance that puts it in line with its European counterparts London and Frankfurt, both up more than 20%.
This week, the US will release its latest GDP estimate on Tuesday, expected to be 3.2% for the third quarter, according to analysts. In France, discussions continue to establish a budget at the start of the year, amid an ongoing delicate political context. Trading volumes are expected to remain particularly low until the year's end, as many institutional investors have already finalized their positions.
The Paris Stock Exchange will be closed on Wednesday, December 25, and Thursday, December 26, for Christmas, before reopening on Friday, December 27. On Wednesday, December 31, markets will also close earlier, shortly after 2 p.m., before shutting down on January 1 for New Year's Day. This end-of-year period traditionally offers little visibility for operators, who now await the January return for more significant volumes and to assess the economic outlook for 2026. Analysts remain divided on the CAC 40's progression next year, with some mentioning the potential for profit rebound in Europe supported by the ECB's accommodative monetary policy, while others highlight the political and budgetary uncertainties that could dampen investor optimism.