The CAC 40 wavers slightly at midday amid hopes for rate cuts and disappointing earnings

A Cautious Market Despite the Promise of US Monetary Easing

The CAC 40's slip into the red, though modest, reflects the nervousness gripping European investors this Tuesday. Certainly, the Paris index remains close to its all-time highs set earlier this week, demonstrating some level of resilience. Nevertheless, this delicate balance reveals the underlying tensions driving the market. The Federal Reserve kicks off its two-day meeting today, with the highlight expected tomorrow: the announcement of a quarter-point rate cut, marking the second reduction in six weeks.
While this monetary easing is largely anticipated by consensus, it nonetheless captures the operators' attention. Economists are expecting a statement similar to September's, with Jerome Powell framing the rate cut as a cautious measure without offering guidance on future decisions. However, the lack of direction for December contributes to some uncertainty regarding the future path of US monetary policy. Simultaneously, a government shutdown in Washington is depriving investors of typically published macroeconomic data, further enhancing this wait-and-see atmosphere. Meanwhile, the anticipation of a meeting between Donald Trump and Xi Jinping on Thursday raises questions about the direction of US-China trade tensions. These multiple factors combine to keep investors in a defensive stance.

Capgemini Reigns Supreme with Spectacular Growth, Supported by Edenred and Cyclical Stocks

Within this general gloom, Capgemini stands out by leading the CAC 40 with an impressive increase of 5.74%. The digital and technology transformation consulting giant delivered third-quarter results that exceeded expectations, reporting revenue of 5.393 billion euros, up 2.9% at constant exchange rates. With this strong performance, the company has raised its annual revenue growth forecast, now expected to be between 2% and 2.5% at constant exchange rates, compared to previous estimates. This upward revision is a particularly welcome signal to the markets, symbolizing management's confidence in the robustness of its business despite a persistently fragile macroeconomic environment. Edenred, the leader in corporate payment and services, follows this positive trend with a 4.72% increase, likely benefiting from a favorable reassessment of the services sector. Among other session winners, Stellantis is up by 1.73%, while Air Liquide shows a gain of 1.66%, demonstrating resilience despite unfavorable currency effects impacting its results. Renault, Publicis, and STMicroelectronics round out the list of advancing stocks, each rising between 1.17% and 1.34%, suggesting renewed interest in cyclical stocks that are sensitive to global growth prospects.

BNP Paribas tumbles as Vinci and other defensive stocks decline under the weight of uncertainty

At midday, the CAC 40 session remains dominated by centrifugal forces, with several stocks experiencing setbacks. BNP Paribas is facing the steepest decline, dropping by 3.28%, penalized by the market following the release of its third-quarter 2025 results. Although the banking group described its performance as solid and in line with its net income target of over €12.2 billion for the year, investors found the report disappointing. Revenue came in at €12.569 billion, below the consensus of €12.8 billion, while operating profit rose by 4.9% to €4.959 billion.
Amid ongoing economic uncertainty, investors are also shying away from certain defensive and cyclical stocks. Vinci is down 1.67%, Dassault Systèmes falls 1.46%, while Bouygues, Orange, and Saint-Gobain report declines of 1.4%, 1.37%, and 1.33% respectively. Danone, despite strong growth impacted by negative currency effects, is down 1.1%. On a more moderate note, ArcelorMittal drops 0.82%, Eurofins Scientific 0.94%, while TotalEnergies, Veolia, Legrand, and Airbus are among other losers of the session, reflecting a degree of sector prudence.