CAC 40: Industry Drives Market Up as Sanofi Declines Sharply

A Strong Session Driven by Budget and Rates

The Paris market is moving into positive territory, in line with other European exchanges: the SBF 120 is up 0.59% at 5,973.25 points, while the STOXX 600 is rising by 0.70% and the DAX by 0.92% during the session. The trend is set against a backdrop of relative relief across the Atlantic, following the publication of U.S. PCE inflation data for August that came in below expectations, which could temporarily temper further monetary tightening expectations.

On the domestic front, public finances remain the center of attention. The government presented its draft budget for 2027 on October 1, with a deficit target maintained at 5.0% of GDP, well above the European limit of 3%. At the same time, the French ten-year OAT is around 4.9%, the highest level since 2002, and the debt burden is expected to rise to 72.9 billion euros by 2027. This situation maintains a risk premium on French assets, particularly impacting banking stocks.

Industry and Automobiles Leading the Way

Today's increase is largely driven by industrial and technological stocks. Stellantis marks the largest rise on the index, up 3.82% at 3.99 euros. The multi-brand automaker announced its participation in the Wave by Vento 2026 show, from October 7 to 9 in Turin, where it will present automated driving demonstrations with its partner Wayve. The group is also making headlines after being surpassed by Renault in market share in France for September, while maintaining its position as the annual leader.

STMicroelectronics closely follows with a gain of 3.25% at 48.79 euros. Companies linked to electrification and infrastructure confirm the trend: Legrand gains 2.83% at 143.70 euros, buoyed by an upgrade from Evercore ISI, which raised its rating from « in line » to « outperform » with a target price set at 175 euros. Schneider Electric is up by 2.43% at 299.70 euros. Danone rounds out the top performance with an increase of 2.15% at 58.82 euros. The variation reflects the overall positive trend: 28 CAC 40 stocks are rising, while 12 are declining.

Sanofi and Luxury Defy Trends

Among the declines, Sanofi shows the most significant drop, falling 3.68% to 70.41 euros. The pharmaceutical company announced the expansion of its collaboration with Regeneron to include four new antibodies, an agreement accompanied by an initial payment of one billion dollars made by Sanofi, which also resolves a prior dispute between the two partners.

The luxury sector remains under pressure with Kering, which fell 2.30% to 212.30 euros. The owner of Gucci and Saint Laurent is the subject of analyst adjustments following a market update: Barclays lowered its target to 300 euros while maintaining an « equal weight » rating, and Citi reduced its target to 243 euros, shifting to a « neutral » stance, anticipating a slowdown in the third and fourth quarters.
Finally, the banking sector suffers from the bond market context, with Crédit Agricole losing 1% to 16.75 euros. Pernod Ricard (-0.81%) and TotalEnergies (-0.67%) close out the list of the top midday declines.