Paris Stock Exchange Ends Slightly Down, Hampered by BNP Paribas Troubles

Tech and service stocks regain ground

Despite the gloomy context, several stocks managed to stand out today. Edenred distinguished itself with a remarkable rise of 3.23%, ranking among the day's top performers. The payment services group is benefiting from a positive momentum that reflects investor confidence in this sector. Renault (+1.76%) and Stellantis (+1.61%) also made gains, demonstrating a certain resilience in the French automotive sector despite the industry's structural challenges. Capgemini, meanwhile, recorded a 1.48% increase, supported by the trust the group inspires amid the context of digital acceleration and transformation. Publicis Groupe (+1.45%) followed a similar path, buoyed by favorable expectations regarding its performance in marketing and communication services. Société Générale (+1.23%) also saw some demand, while defensive stocks like Unibail-Rodamco-Westfield (+0.93%), Air Liquide (+0.87%), and Carrefour (+0.85%) rounded out the list of gaining stocks. These movements suggest that investors continue to differentiate their approaches, rewarding sectors deemed to have a promising future while maintaining their exposure to safe-haven stocks.

BNP Paribas drags down the session, followed by cyclical stocks

The optimistic outlook for rising stocks has shattered against the hurdles faced by some major names. BNP Paribas, a leading entity in the French banking sector, recorded the largest drop in the CAC 40, falling by 3.54%, reflecting investor disappointment with the third quarter 2025 results. The group reported revenues of 12.569 billion euros, falling short of the expected consensus of 12.8 billion, while the net income of 3.044 billion slightly missed the forecast of 3.09 billion. This underperformance was enough to cloud sentiment around the stock despite the reaffirmation of its 2025 objectives. Vinci (-2.17%), the French giant in construction and public works, experienced a marked decline, while Dassault Systèmes (-1.73%) posted a significant drop. L'Oréal (-1.38%), a symbol of French luxury, was not spared from the correction, along with Saint Gobain (-1.33%), Schneider Electric (-1.04%), and Euronext (-1.02%). These declines reflect a certain cautiousness towards cyclical and large-cap stocks, which are considered more vulnerable to macroeconomic uncertainties that investors fear.

A Waiting Session Before the Federal Decision

This lukewarm closing mainly reflects the atmosphere of anticipation characterizing European markets at the end of October. Investors, holding their breath ahead of the conclusion of the Federal Reserve Board of Governors meeting, have opted for caution over boldness. The prevailing scenario remains a quarter-point rate cut, marking the second reduction of the year following the one on September 18, justified by the slowdown in the US labor market amidst persistent inflation around 3%. In this context, the absence of major short-term economic catalysts, exacerbated by the Washington shutdown, has limited directional movements. European indices maintained some cohesion, with the DAX showing a slight gain of 0.1%, while the Euro Stoxx 50 was marginally down by 0.1%. This relative stability contrasts sharply with the ongoing euphoria on Wall Street, where key indices are testing new records in the wake of positive results from tech giants and successful strategic investments like Microsoft's in OpenAI. For Paris, the real test of momentum will await the Fed's decisions and the economic calendar for November.