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France’s equity index CAC 40 is up in positive territory on Wednesday, extending gains from the previous session, as investors continue to follow the developments on the geopolitical front, and tracking a fresh batch of quarterly earnings updates. <\/p>\n
Data showing a drop in the nation’s consumer price inflation is aiding sentiment. Defense stocks gained, supported by an agreement between India and France to strengthen defense and aerospace ties.<\/p>\n
The CAC 40, which advanced to 8,416.05, was up 44.05 points or 0.53% at 8,405.51 a few minutes ago.<\/p>\n
Thales is up 4.8%. STMicroelectronics is gaining about 3.2%, while ArcelorMittal and Schneider Electric are up 3% and 2.7%, respectively.<\/p>\n
Societe Generale, Safran and BNP Paribas are up 2.15%-2.3%. Airbus, TotalEnergies, Credit Agricole, Engie and Bouygues are gaining 1.2%-1.5%.<\/p>\n
Eurofins Scientific, Veolia Environment, Eiffage, Vinci, Stellantis, Kering and Unibail Rodamco are also up with notable gains.<\/p>\n
Shares of food retailer Carrefour are down more than 5% after the company reported a decline in operating profit in 2025 due to acquisition costs.<\/p>\n
Pernod Ricard is down by about 4.2%, while EssilorLuxottica is declining by nearly 4%.<\/p>\n
Capgemini is drifting lower by 2.7%, while Hermes International, Air Liquide, Saint Gobain and Euronext are down 1%-1.6%.<\/p>\n
Final data from the statistical office INSEE revealed France’s inflation eased to the lowest in five years in January and remained well below the European Central Bank’s target of 2%.<\/p>\n
The consumer price index rose only 0.3% on a yearly basis in January, following the 0.8% increase seen in December, the data showed. This was the weakest rate since December 2020, when prices remained flat. <\/p>\n
Similarly, EU harmonized inflation softened to 0.4%, as estimated, from 0.7% in December. The harmonized rate was also the weakest since December 2020.<\/p>\n
At the same time, core inflation hit 0.7% in January, down from 1.1% in the previous month. This was the weakest since July 2021.<\/p>\n
On a monthly basis, consumer prices dropped 0.3% after a 0.1% rise. Likewise, the harmonized index of consumer prices slid 0.4% following last month’s 0.1% gain. Both the CPI and HICP rates matched the flash estimates published earlier. <\/p>\n<\/p>\n
Market Analysis<\/p>\n<\/div>\n