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The Paris Stock Exchange experienced a particularly favorable session on Thursday, October 16, 2025, with the flagship Parisian index rising by 1.38% to move into positive territory. This remarkable performance occurs in a calm political context, as the motions of no confidence against the Lecornu government were rejected in the National Assembly earlier in the day. Investors welcomed this outcome, which at least temporarily alleviates the threat of another major political crisis. All CAC 40 stocks benefited from this renewed confidence, with the notable exception of a few luxury heavyweights. The session was marked by a slew of quarterly reports, providing investors with renewed insight into the health of French companies. The Paris market thus stood out favorably from its European counterparts, reflecting investors' particular relief concerning the domestic situation.
Pernod Ricard's stock emerged as the standout performer of the session with a spectacular gain of 4.15% to 86.84 euros, catapulting the share to the top of the CAC 40. This remarkable performance follows the release of the first-quarter revenue for the 2025-2026 fiscal year earlier this morning. While sales showed a 7.6% organic decline to 2.384 billion euros, impacted by ongoing challenges in China with a 27% drop and in the United States with a 16% decrease, the company nonetheless exceeded analysts' expectations of 2.35 billion euros in revenue. The second-largest wine and spirits company in the world also reassured investors by confirming its annual outlook, highlighting the group's resilience in a challenging environment. Michelin's stock claimed the second spot on the podium with a 3.4% rise to 27.09 euros, marking a welcome technical rebound following the severe correction it suffered last Monday. The Clermont-Ferrand-based tire manufacturer had plummeted nearly 10% after issuing a warning on its annual results, revising its operating profit target down to between 2.6 and 3 billion euros, compared to the over 3.4 billion initially forecasted. This technical correction is part of a market adjustment after an excessive drop. Legrand's stock rounds out the top three with a 2.84% increase to 148.70 euros, driven by the announcement of a simplified public tender offer for the shares of Cogelec, as part of the acquisition of Cogelec Développement on October 7. This strategic move illustrates the growth momentum of the specialist in electrical and digital infrastructure.
Contrary to the general trend, the luxury sector showed mixed performances, with Kering's stock being the worst performer on the CAC 40. François-Henri Pinault's group fell by 1.48% to 308.50 euros, dropping after benefiting the previous day from the rebound following LVMH's reassuring reports. The downgrade by Berenberg, which lowered its recommendation from Hold to Sell, impacted the stock. The German analyst justified this decision by highlighting that the sector faces a demand-side issue rather than a supply one, evidenced by declining consumer aspirations and a contraction in Chinese demand. The market is now looking to the new CEO, Luca de Meo, to unlock the latent value of the group's iconic brands while addressing structural operational and financial issues. Hermès International's stock also declined by 0.6% to 2,162 euros, despite Berenberg maintaining its buy recommendation with a target price of 2,600 euros. The luxury leather goods maker remains valued for its exposure to absolute luxury, where demand driven by wealth remains strong. LVMH rose more modestly by 0.72% to 602.20 euros after announcing an organic growth of 1% in the third quarter last Tuesday, indicating improving trends following a challenging first half marked by a 4% decline. Euronext lost 1.18% to 125.60 euros, while Bouygues edged down by 0.29% to 41.46 euros, weighed down by the complexity of the SFR acquisition case, with the joint offer alongside Orange and Free being maintained despite Altice's initial rejection.
Beyond the leading stocks, numerous defensive and industrial stocks benefited from the renewed wave of optimism. Eurofins Scientific jumped 2.65% to €63.48, continuing its share buyback program, which reflects management's confidence in the group's outlook. Edenred rose 2.49% to €20.60, potentially benefiting from a rebound at technical support levels identified by analysts. Sanofi increased by 2.43% to €86.33, buoyed by the announcement of the launch of a Translational Excellence Center in Montpellier dedicated to autoimmune diseases, showcasing the pharmaceutical group's innovation strategy. EssilorLuxottica gained 2.37% to €276.60, ahead of its third-quarter revenue announcement scheduled for the evening, with the acquisition of Ikerian AG, specializing in artificial intelligence and eye health, also supporting the stock. In the industrial sector, STMicroelectronics rose 2.18% to €25.265, Schneider Electric climbed 2.15% to €252.35, and Stellantis increased 2.13% to €8.829, the latter benefiting from rumors of a potential $13 billion investment in the U.S. to bolster its American production. Safran advanced 2.06% to €302.80, reinforcing its positive momentum after a 16.7% increase in the first quarter of 2025, surpassing expectations. All these performances indicate a Paris market regaining momentum after several weeks of uncertainty.
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This article was automatically translated by AI. The information presented is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell any financial instrument, or a solicitation. Readers should conduct their own research before making any decisions. Investing in the stock market involves risks, including the loss of capital. Past performance of an asset or market is not indicative of future results. Any investment decision should take into account your personal financial situation, objectives, and risk tolerance.
