French Stocks Rise Despite Fitch Downgrade; Oil's Tumble Aids Sentiment

(RTTNews) - Despite Fitch's unexpected downgrade of the nation's credit outlook, French stocks gained some ground in positive territory on Monday as oil prices fell sharply amid easing supply concerns on hopes the ongoing discussions involving Iranian officials and Qatari mediators could result in a positive outcome.

Traders were also reacting to reports suggesting that U.S. President Donald Trump wants to give diplomacy with Iran more time before resuming strikes.

Brent crude front-month futures fell to $108,75 a barrel, down $4.68 or 4.13% from previous close.

Fitch warned that France's debt outlook is worsening, expressing doubts about the country's ability to sustainably restore its public finances after the 2027 presidential election.

The benchmark CAC 40 was up 28.43 points or 0.36% at 7,997.85 nearly half an hour past noon.

ArcelorMittal, Safran, Saint-Gobain, STMicroElectronics, BNP Paribas, Eiffage, Accor and Pernod Ricard gained 1.3%-1.75%.

Vinci, Airbus, Legrand and Michelin climbed 1%-1.15%. EssilorLuxottica, Eurofins Scientific, Danone, Bouygues, Unibail Rodamco, Publicis Groupe, Engie, L'Oreal, Hermes International and Societe Generale gained 0.4%-0.9%.

Euronext and TotalEnergies shed 1.3% and 1.2%, respectively. Renault, Carrefour, Capgemini, Stellantis and Sanofi dropped by 0.4%-0.75%.

Alstom shares nosedived 31%. The French train maker cut its profit and cash flow forecasts for the second time since April and also revised down its sales forecast for the 12 months to March to between 2% and 4%, from about 5% previously.

In economic news, final data from S&P Global showed the S&P Global France Manufacturing PMI was revised slightly up to 49.5 in October from 49.3 in the preliminary estimate but remained below September's 50.6. The data pointed to a renewed contraction in the country's manufacturing activity, following two consecutive months of expansion, marking the steepest decline since July last year.