CAC 40 under pressure, Schneider Electric plummets nearly 10%

A Paris Trading Session Against the European Trend

The contrast is stark. While Paris is struggling, the rest of Europe is holding up better: the STOXX 600 edged up 0.12% in the session, the FTSE 100 gained 0.21%, and the DAX limited its losses to -0.08%. The Paris stock market is therefore paying a specific price.

This is due to two factors. First, a major corporate shock with the drop in Schneider Electric following the announcement of a strategic acquisition. Second, a tense national backdrop: the 2027 budget proposal is set to be explosive in Parliament, while the risk premium on French debt remains high and the euro is at its lowest level in seventeen months. This dispersion reflects the gloomy mood: 24 CAC 40 stocks are declining.

Energy and Defense Provide Support, Dassault Systèmes Leads

In this gloomy setting, a few stocks are holding up. Dassault Systèmes leads the rankings with a rise of 2.52% to 21.15 euros. Stellantis follows with a gain of 1.98% to 3.96 euros.

Defense and energy stocks benefit from the tense geopolitical climate, including the war in the Middle East and tensions around the Strait of Hormuz. Thales moves up 1.71% to 226.50 euros. Brent remains above 100 dollars per barrel, a favorable context for oil companies: TotalEnergies gains 1.49% to 75.57 euros.

Air Liquide also marks an increase of 1.67% to 173 euros, following the presentation of its Beyond strategic plan. The group plans to allocate more than 40 billion euros in capital and is launching, for the first time, a 4 billion euro share buyback program, while aiming for a recurring ROCE of over 11% by 2030.

Schneider Electric Slumps, Luxury Sector Under Pressure

The heavyweight of the session is down. Schneider Electric drops 9.55% to 274.05 euros after announcing the signing of an agreement to acquire PTC for approximately 22 billion euros. The transaction, entirely in cash, will be financed through debt and a capital increase, with the Rueil-Malmaison group planning a pause in its share buybacks in 2027 and 2028. In its wake, Legrand falls 2.63% to 140.75 euros.

The luxury sector also remains poorly oriented. Hermès International loses 2.50% to 1,267 euros, hit by a double downgrade in recommendation: UBS changes its stance from « hold » to « sell, » lowering its target from 1,695 to 1,168 euros, while Goldman Sachs also adopts a « sell » view. Kering slips 1.64% to 206.85 euros, with UBS lowering its target from 285 to 224 euros. Capgemini completes the picture of declines, down 2.16% at 106.55 euros.