French Stocks Edge Lower After Fitch Move

The CAC 40 edged down 0.1% to 7,959 on the first trading day of November, as market sentiment turned subdued following Fitch’s unexpected downgrade of France’s credit outlook. While the credit agency affirmed France’s A+ rating, it revised its outlook to negative from stable following an unexpected contraction in the economy in the third quarter. The agency also pointed to weaker growth prospects, higher borrowing costs and a widening budget deficit since its previous review in August. The move followed the recent surprise decision by Moody’s to affirm France’s Aa3 rating while maintaining a negative outlook. Among the biggest decliners were Airbus (-2%), Safran (-1.2%), Thales (-1.1%) and Société Générale (-2%). In contrast, L’Oréal (2.9%), Hermès (2.2%) and Air Liquide (2%) advanced. Elsewhere, Sanofi advanced 4.7% following growth in Q3 sales and adjusted EPS, as well as an $8 billion pact with Regeneron.