French Stocks Rise for 3rd Straight Session

The CAC 40 rose 0.4% to 7,860 on Tuesday, extending gains for a third consecutive session as lower oil prices and bond yields supported sentiment, helping offset growing concerns over AI valuations. Investors increasingly doubt the return-on-investment timelines for massive corporate capital expenditures in AI amid elevated borrowing costs. Gains were led by Société Générale (1.8%), L’Oréal (1.3%), Danone (1.3%), Orange (1.3%), and EssilorLuxottica (1.2%). In contrast, semiconductor giant STMicroelectronics bore the brunt of a broader tech retreat, falling 4.7%. Meanwhile, LVMH fell 1.0% after reporting weaker-than-expected third-quarter organic sales, weighed down by subdued demand in China. Hermès (-0.8%) and Kering (-0.2%) also fell, as LVMH’s performance, widely viewed as a bellwether for the luxury sector, fueled doubts about the strength of the broader recovery.