CAC 40 in Troubled Waters: Morning Pause Didn’t Hold

A week of widespread pullback still weighs on the market

The Paris market remains under tension this Friday, unable to capitalize on its slightly positive opening. This negative performance of 0.54% by midday reflects the rapid fading of recovery attempts that were observed right from the start. Investors, still wary from movements the day before, remain cautious in a context where uncertainties are predominant. The week will close with a cumulative decline of about 1.9% for the CAC 40, marking a period where doubts have largely outweighed reassuring elements. This fragility in the Paris market reflects a widespread risk aversion that has spread from Wall Street, fueled by concerns over the extraordinarily high valuations of major American tech companies, particularly those operating in artificial intelligence. Adding to this are growing questions about the trajectory of the US labor market, which shows clear signs of deterioration according to the latest available indicators. On the monetary policy front, speculation is rife: will the Federal Reserve implement further easing in December? This question remains unanswered, extending the uncertainty that paralyzes risk-takers. The macroeconomic agenda for the week provided no elements likely to reverse this downward trend that has prevailed for more than a week.

Euronext leads the bullish trend, boosted by impressive results

Amid widespread declines, a few stocks managed to stand out. Euronext led the way with a rise of 2.21%, benefiting from better-than-expected quarterly operational results buoyed by strict cost management. The market operator also lowered its 2025 expense target by 10 million euros, delivering a reassuring performance in terms of budgetary discipline. The announcement of a 250 million euro share buyback program, representing about 2% of its capital, provided additional support for investors. ArcelorMittal gained 2.04%, taking second place in the day's rankings. This rebound by the steel giant reflects a slight improvement in sentiment toward certain cyclical sectors. In the luxury sector, Kering rose by 1.48%, while LVMH and Hermès posted more modest gains of 0.38% and 0.24%, respectively. These performances in the luxury sector, though upward, indicate a still-cautious appetite for discretionary consumer stocks in the current environment. The rest of the market showed muted resilience, with defensive sectors like Danone advancing by 0.36% and financials such as BNP Paribas achieving small and fragile gains of 0.24%.

Damage Piles Up in Vulnerable Sectors

While the few beneficiaries of the day can barely justify their presence among the winners, losses are significantly amplifying in the sectors most affected by risk aversion. Edenred faces the largest decline of the day with a drop of 2.72%. Bureau Veritas falls by 2.61%, while Veolia Environnement is down by 2.28%. Together, these three stocks serve as a barometer of the uncertainty prevailing in the Paris market at the moment. In the financial sector, Société Générale suffers a significant setback with a decrease of 1.72%, while AXA drops by 1.22%. Saint-Gobain declines by 1.41%, and Vinci is down by 1.12%. In the technology sector, Capgemini is particularly hit with a decline of 1.36%, while Schneider Electric falls by 1.66%. Dassault Systèmes is down by 0.47%, Publicis Groupe by 0.71%, and AIR Liquide by 0.76%. In the aerospace and defense industry, Airbus declines by 1.05% and Safran by 0.59%. This widespread decline across nearly all sectors confirms the lack of a true safe haven within the Paris index, as investors maintain a defensive stance awaiting macroeconomic clarifications.