CAC 40 Advances As Investors React To Economic Data

(RTTNews) - The French stock market's key index CAC 40 moved higher on Friday, extending gains from the previous session, as investors digested regional economic data and latest earnings news.

Reports about U.S. lawmakers reaching a bipartisan funding deal to avoid a government shutdown aided sentiment. Meanwhile, President Donald Trump is reportedly set to announce former Federal Reserve official Kevin Warsh as his choice to replace Jerome Powell as the chair of the central bank.

The CAC 40 was up 42.07 points or 0.52% at 8,113.43 about half an hour past noon.

Eurofins Scientific climbed 2.3% and Dassault Systemes moved up 2.25%, while Capgemini advanced 2.1%.

STMicroElectronics, Societe Generale, EssilorLuxottica, Accor and Vinci gained 1%-1.5%.

Pernod Ricard, Safran, Kering, AXA, Schneider Electric, Bouygues, BNP Paribas, Engie, Sanofi, Stellantis and Veolia Environment posted moderate gains.

Carrefour declined 1.1%. Air Liquide, Airbus, Saint Gobain, L'Oreal, Renault and Danone posted modest losses.

In economic news, the French economy grew at a slower pace towards the end of the year as political and fiscal uncertainty weighed on investment and consumption, official data revealed on Friday.

Gross domestic product posted a quarterly growth of 0.2% in the fourth quarter, the statistical office INSEE reported. The rate came in line with expectations and followed third quarter's 0.5% expansion and the 0.3% rise in the second quarter.

Overall economic growth in 2025 softened to 0.9% from 1.1% in 2024.

The 2026 outlook is moderately positive, with GDP growth expected to reach around 1%. Growth could reach 1.1% next year but political and fiscal risks remain elevated, ING economist Charlotte de Montpellier said.

Another report from INSEE showed household consumption in France dropped 0.6% in December, worse than November's 0.3% decrease.

In a separate report, the INSEE said domestic producer prices declined 2% in December from a year ago, sharper than November's 1.5% drop. At the same time, the monthly growth eased to 0.2% from 2.8% in November.

Data from Eurostat said the euro area unemployment rate fell to 6.2% in December, while the rate was expected to remain unchanged at 6.3%. The youth unemployment rate dropped slightly to 14.3% from 14.4% in November.

The overall unemployment rate in the EU was stable at 5.9% in December.