Stock Index CAC 40 Experiences Decline Following Initial Gains Amidst Earnings Response from Investors
The French stock market retreated and slipped into negative territory on Thursday, with the benchmark CAC 40 closing down 26.17 points or 0.33% at 7,835.79.
Several major companies experienced significant movements in their share prices. Renault was down 2.3%, STMicroElectronics declined 1%, and Bouygues dropped by about 3.7%. However, BNP Paribas managed to gain about 1.3%.
Air France-KLM and Safran saw positive movements, with Air France-KLM gaining more than 3% due to higher second-quarter profits, and Safran up with a gain of nearly 5% thanks to strong first-half earnings and full-year revenue guidance.
Legrand and Dassault Aviation also had impressive performances, with Legrand gaining about 4% on impressive earnings, and Dassault Aviation up 1.3%. Thales, Capgemini, L'Oreal, EssilorLuxottica, and L'Oreal are up 1.3 to 1.5%, while EssilorLuxottica is gaining 2.7%.
On the downside, Schneider Electric and Hermes International were down 1.7% and 1.3%, respectively. Veolia Environment also reported a decline in first-half revenue, causing its shares to drop nearly 2%.
Sanofi and Accor had less fortunate results, with Sanofi down with a loss of about 2.1% after the company's earnings fell short of expectations, and Accor plunging nearly 10% despite reporting a larger-than-expected rise in H1 earnings.
Consumer price inflation in France remained stable at 1% in July, while producer prices in France advanced 0.2% in July on a yearly basis. Month-on-month, producer prices declined at the slowest pace since February, with a drop of 0.2% in June. France's harmonized inflation remained stable at 0.9% year-on-year in July.
It's important to note that this recap is based on the available information as of the provided date and time. For more detailed and accurate information, it is recommended to consult dedicated financial news sources such as Euronext Paris summaries, Bloomberg, Reuters, or the French National Institute of Statistics and Economic Studies (INSEE) for official inflation updates.
The turbulent market also impacted the investment landscape, with businesses like Renault, STMicroElectronics, and Bouygues experiencing losses. Meanwhile, BNP Paribas bucked the trend and recorded a gain.
Investors looking beyond the French stock market might find opportunities in sectors like aviation, as Air France-KLM and Safran experienced positive movements, along with companies like Legrand and Dassault Aviation. However, caution is warranted with regards to businesses such as Sanofi and Accor, which experienced significant declines.
