French Stocks Mixed As Investors React To Earnings, Economic Data

(RTTNews) - French stocks turned in a mixed performance Friday morning with investors reacting to corporate earnings announcements and the latest batch of economic data.

Data showing an unexpected contraction and higher crude oil prices weighed on sentiment.

Brent crude front-month futures rose to $114.07 a barrel before dropping to around $112.60, still up as much as 1.6% from previous close.

The benchmark CAC 40, moving between 7,957.61 and 7,992.00, was up 4.40 points or 0.05% at 7,974.40 a little while ago.

Sanofi surged 5.2% after clocking stronger-than-expected third-quarter earnings and lifting its FY26 outlook.

Danone climbed 2.7%, while EssilorLuxottica and Pernod Ricard gained 2.3% and 2%, respectively.

Capgemini gained 1.7%. The IT consulting group upgraded its 2026 financial targets after reporting a 12% rise in third-quarter revenue.

Eurofins Scientific, Hermes International, Air Liquide and L'Oreal gained 1.3%-1.7%. Orange, TotalEnergies, Publicis Groupe, Dassault Systemes, LVMH, Kering and Carrefour also moved higher.

Stellantis, STMicroelectronics and Schneider Electric shed 3.4%, 3.3% and 3%, respectively. Legrand dropped 2.3% and Societe Generale drifted down 2%.

Credit Agricole declined by 1.6% despite reporting higher profit for the third quarter.

BNP Paribas, ArcelorMittal, Safran, Engie, Bouygues, Thales, Accor, Airbus and Unibail Rodamco lost 1%-1.7%.

Preliminary data from the statistical office INSEE said the French economy contracted unexpectedly in the third quarter on weak investment and exports, amid high borrowing costs and social unrest clouding the outlook.

The data showed France's gross domestic product fell 0.1% sequentially after stagnating in the second quarter. Economists had forecast the economy to expand 0.1%.

The expenditure-side of GDP showed that foreign trade and the fall in gross fixed capital formation contributed to the contraction in the third quarter.

France's annual inflation rate rose to 3.4% in October, picking up from 3.1% in September and overshooting expectations of 3.2%, according to preliminary estimates. This marked the highest reading since December 2023. Meanwhile, the EU-harmonised annual inflation rate accelerated to 3.8% from 3.4%, while monthly HICP rose 0.4% after falling 0.3% in September.

French domestic producer prices rose 1.7% month-on-month in September, accelerating from 1% in the previous month. This marked the highest reading since March. On a yearly basis, producer prices climbed 6.8%, up from an upwardly revised 4.9% in August, marking the highest level since March 2023.