Paris Stock Exchange ends slightly higher ahead of Christmas break

Luxury stocks regain momentum in a stagnant market

By midday, the French luxury giants are leading the CAC 40 gains, with LVMH up 1.05% at 633.90 euros, followed by Kering (+0.95% at 302.30 euros) and Hermès International (+0.72% at 2,097 euros). These rises come amid very low trading volumes, as many market participants have anticipated the holiday lull. The luxury sector, which experienced a mixed year in 2025 marked by a slowdown in Chinese demand and varying performances among different players, is benefiting from this technical rebound as the holidays approach. Investors seem to be temporarily setting aside concerns about consumption to focus on the solid fundamentals of French brands. Euronext is also gaining 0.63% to 126.90 euros, while TotalEnergies progresses by 0.54% to 56.15 euros. However, these upward movements remain measured in a market operating in half-day mode, with an early close at 2 PM due to Christmas Eve. The stock exchanges in Frankfurt, Milan, and Zurich are already closed, highlighting the limited nature of trading in Paris.

Sanofi declines despite a $2.2 billion strategic acquisition

Sanofi announced on Wednesday the acquisition of Dynavax Technologies Corporation for $15.50 per share in cash, totaling approximately $2.2 billion. This transaction allows the French pharmaceutical giant to enhance its vaccine portfolio with HEPLISAV-B, a hepatitis B vaccine for adults available in the United States, as well as a shingles vaccine candidate currently in phase 1/2 of clinical development. The deal is expected to be completed in the first quarter of 2026, pending customary regulatory approval. Despite this strategic move to strengthen its presence in adult vaccination, Sanofi's stock showed a slight decline of 0.61% to 81.72 euros by mid-session.

This relative underperformance is likely due to J.P. Morgan's neutral rating issued the previous day, which maintained its recommendation without setting a specific price target. Nevertheless, the stock remains supported by a series of recent favorable developments: the approval in Japan of Dupixent for children aged 6 to 11 with asthma received on December 23, and the agreement signed on December 22 with the U.S. government to reduce the average price of certain Medicaid drugs by 61%, accompanied by a $2.3 billion investment in biomanufacturing in the United States. These initiatives demonstrate the group's commitment to bolstering its position in the American market while expanding its therapeutic offerings.

Defensive Stocks Limit Gains in the Paris Index

Safran slips 0.30% to 299.50 euros, followed by Schneider Electric (-0.28% to 235.30 euros), Crédit Agricole (-0.17% to 17.545 euros), and Thales (-0.13% to 228.70 euros). These changes remain marginal and are part of a normalization phase after several positive sessions.
The CAC 40 index gains about 0.2% to 8,117 points, continuing the stable trend that has been in place for nearly a month.
Investors have already closed their positions for the year, opting for a well-deserved break after a 2025 characterized by contained volatility and respectable performances for European indices. The Paris Stock Exchange will be closed Thursday, December 25, for Christmas Day, before resuming trading on Friday, December 26. A shortened session is scheduled for December 31, with an early close at 2 p.m. as well. Major events for the markets are expected in early January 2026, notably with the release of fourth-quarter 2025 results, which will allow an assessment of the strength of French companies' growth in an economic environment still marked by geopolitical and monetary uncertainties.