CAC 40 in the Red at Midday: Automotive and Luxury Weigh Down Paris Market

Back-to-School Season Under Pressure Following European Markets

The Paris session takes place in a gloomy European climate. At the same time, the German DAX is down 1.14% and the STOXX 600 is down 0.78%, both indices monitored during the session. The trend was already downward the previous day across the Atlantic: at the close of Monday, August 31 on Wall Street, the S&P 500 had lost 0.33% and the Dow Jones 0.70%, with only the Nasdaq 100 managing a slight gain of 0.08%.

The day's outlook is unambiguous: within the CAC 40, there are only 7 stocks rising compared to 32 declining and one stable. A clear imbalance, reflecting a general aversion rather than an isolated movement on a few stocks.

Air Liquide and TotalEnergies Go Against the Trend

In this depressed market, a few stocks are holding their ground. Air Liquide marks the best performance of the index, up 2.58% at 173.92 euros. The industrial gas group clearly leads the pack of the few winners.

TotalEnergies follows with an increase of 1.43% at 76.61 euros. Carrefour rounds out the top three with a more modest gain of 0.67%. Among insurers, AXA inches up 0.44% to 43.29 euros, as BNP Paribas Exane raised its price target from 53 to 56 euros while maintaining its favorable opinion. STMicroelectronics gains 0.22%, also impacted by a slight target adjustment from the same bank.

Automotive sector declines, luxury and materials plummet

At the bottom of the table, the automotive sector draws attention. Renault falls by 3.16% to 28.78 euros, marking the biggest drop on the CAC 40. The manufacturer is affected by unfavorable sector news: according to monthly data, Renault and Stellantis underperformed in August despite a rising market, with the French light vehicle market up 3.6% to 110,132 units while both manufacturers recorded declines. Additionally, the group announced that starting September 1st, energy savings certificates will be extended to used electric vehicles.

Stellantis also suffers, down 2.56% to 4.64 euros. Besides the market context, the Italian-American manufacturer announced the appointment of Arnaud Belloni as head of the Fiat, Abarth, and Lancia brands, as well as marketing for Europe.

The decline also affects materials and luxury sectors. Saint-Gobain loses 2.96% to 76 euros, while Pernod Ricard drops 2.71% to 62.75 euros. Kering completes the list of major declines, down 2.60% to 247.45 euros. This decline reflects investors' caution towards cyclical and consumer-exposed stocks as the new school year begins.