French Stocks Hit 1-Month High
The CAC 40 edged up 0.1% to 7,978 on Friday, reaching its highest level in a month and putting the benchmark on track for a modest monthly gain despite mounting economic headwinds, particularly an unexpected economic contraction and a fresh acceleration in inflation. Preliminary estimates showed France’s GDP contracted 0.1% q-o-q in Q3 2026, following stagnation in the previous quarter and missing expectations for 0.1% growth. Meanwhile, annual inflation accelerated to 3.4% in October from 3.1% in September, exceeding forecasts of 3.2% and marking its highest level since December 2023. The data added to mounting economic and political pressures, including rising borrowing costs, violent protests and persistent fiscal uncertainty. L’Oréal (1.3%), Hermès (1.3%) and Air Liquide (1.2%) led the gainers. In contrast, Schneider Electric (-3%), BNP Paribas (-1.9%) and Safran (-1.1%) lagged. STMicroelectronics also tumbled 3.8%, tracking broader weakness across the technology sector.
The CAC 40 edged up 0.1% to 7,978 on Friday, reaching its highest level in a month and putting the benchmark on track for a modest monthly gain despite mounting economic headwinds, particularly an unexpected economic contraction and a fresh acceleration in inflation. Preliminary estimates showed France’s GDP contracted 0.1% q-o-q in Q3 2026, following stagnation in the previous quarter and missing expectations for 0.1% growth. Meanwhile, annual inflation accelerated to 3.4% in October from 3.1% in September, exceeding forecasts of 3.2% and marking its highest level since December 2023.
The data added to mounting economic and political pressures, including rising borrowing costs, violent protests and persistent fiscal uncertainty. L’Oréal (1.3%), Hermès (1.3%) and Air Liquide (1.2%) led the gainers. In contrast, Schneider Electric (-3%), BNP Paribas (-1.9%) and Safran (-1.1%) lagged. STMicroelectronics also tumbled 3.8%, tracking broader weakness across the technology sector.