The Paris Stock Exchange’s benchmark index, the CAC 40, registered a slight decline of 0.21% on Tuesday, closing at 8,103.85 points. This follows a 0.37% drop the previous day, settling at 8,121.07 points. Trading activity was notably subdued, with volumes barely exceeding two billion euros, attributed to the absence of numerous investors during the year-end holiday period.
U.S. GDP Surprises, French Parliament Acts
Investors closely monitored the release of the U.S. gross domestic product (GDP) figures for the third quarter. The American economy demonstrated a significant acceleration between July and September, achieving an annualized growth rate of 4.3%. This data, published with a delay due to a prolonged budgetary paralysis, surpassed analysts’ expectations, who had anticipated a deceleration to approximately 3.2% after the previous quarter’s 3.8% growth, according to consensus compiled by MarketWatch and Trading Economics. Despite the surprising U.S. economic performance, the CAC 40’s trajectory remained largely unchanged.
On the French political front, the National Assembly unanimously adopted a special bill on Tuesday. This legislation aims to ensure the provisional funding of the state, pending the resumption of budgetary debates in January. The bill is set to be transmitted to the Senate immediately for definitive adoption. This measure was introduced by the government following the failure of the joint parliamentary committee of deputies and senators to reach an agreement on the 2026 budget. A similar special law had been enacted in December 2024, after the government of Michel Barnier faced a censure vote.
Sanofi’s Approval and Market Bond Performance
In other market news, the French pharmaceutical company Sanofi experienced a positive movement, with its shares increasing by 0.78% to 81.33 euros. This surge followed Sanofi’s announcement on Tuesday regarding the approval in Japan of its drug Dupixent. The medication is now cleared to treat “bronchial asthma in children aged 6 to 11 years with severe or refractory disease.”
Meanwhile, on the bond market, the yield on French government bonds saw a decrease, falling to 3.56% from 3.61% at the close of the previous day.
The overall market sentiment reflected a cautious approach as the year draws to a close, with investors digesting economic data and political developments ahead of the new year.
Source: https://actu.orange.fr/economie/la-bourse-de-paris-termine-en-legere-baisse-CNT000002mjDkj.html
