The Paris stock exchange is fighting to end the day in positive territory, with a modest gain of 0.05% looking rather fragile. The CAC40 is hovering near 8,070, thanks to an unexpected rebound in U.S. indices: while a flat open was anticipated, the S&P and Nasdaq are posting substantial gains between +0.3% and +0.4%, though the Dow Jones is slipping by -0.1%.
Among today's biggest losers are Edenred (-3.4%) and Thales (-2.1%), closely followed by Sanofi and Eurofins Scientific (-1.3% and -1.1% respectively). The CAC40 is being supported by Bouygues, Stellantis, and Renault (+2.6%), as well as Pernod and Accor (+2%).
European markets appear poised to escape a seventh consecutive session of decline. The cumulative loss over this period has not been particularly dramatic, with various European indices only about 3% below their recent highs--a figure that falls within the 'mild average' of corrections seen since mid-April. As such, the upward channel established on April 11 remains intact.
As the quarterly earnings season draws to a close, markets are grappling with high valuations, a lack of catalysts, and a potential speculative bubble in AI. This combination increases the likelihood of significant profit-taking in the most 'overheated' assets, raising the risk of a market correction and prompting investors to remain cautious.
Yesterday, the 'crypto' sector experienced a sharp downturn, with Ethereum dropping as much as -12.5% and Bitcoin falling -6%, breaking through summer support levels ($3,400 for Ethereum, which fell below $3,100, and $103,500 for Bitcoin, which dropped to around $99,000). Buyers have since returned, with Bitcoin approaching $102,000 and Ether near $3,300, though the technical situation remains uncomfortable.
Investor sentiment darkened yesterday following comments from the heads of several major U.S. investment banks, who warned that a Wall Street correction has become inevitable within the next 12 to 24 months.
The case of Palantir, the predictive AI specialist, is particularly striking. Despite reporting quarterly results that exceeded expectations and raising its annual targets on Monday evening, the Denver-based company's stock plummeted nearly 8% yesterday, as investors took profits after its share price quadrupled since January 1 (with its P/E ratio ranging between 360 and 400 before the correction).
On the statistics front, there are still no 'official' figures from the U.S., as the government shutdown entered its sixth week this morning (day 36, with no compromise in sight). However, private institutions continue to report: the ISM services index rebounded to 52.4 after coming in at 50 in September (consensus was 51), with the new orders component rising to 56.2 from 50.4.
Additionally, ADP released its monthly survey: 42,000 private sector jobs were created in October, 10,000 more than expected.
In Europe, French manufacturing output rebounded in September (+0.9% after -1% in August), as did overall industrial production (+0.8% after -0.9% the previous month), according to seasonally adjusted INSEE data.
However, France's HCOB composite PMI fell from 48.1 in September to 47.7 in October, marking its lowest level since last February and signaling a 14th consecutive monthly decline in private sector activity.
In the eurozone, the HCOB composite PMI rose sharply in October (52.5) compared to September (51.2), reaching its highest level since May 2023 and indicating an acceleration in overall activity growth in the region.
Finally, in Germany, industrial orders rebounded more than expected in September, thanks in particular to renewed activity in the automotive sector, according to data released Wednesday by the Federal Statistical Office.
Economic indicators will not be the only reference points for investors in the coming days. They will also be watching results from several market heavyweights, including Arm, AstraZeneca, McDonald's, and Qualcomm.
On the Forex market, the euro is down 0.05% against the greenback, at 1.1480 USD, after breaking through the 1.16 and 1.15 thresholds in recent days to hit a three-month low against the dollar (1.1460 this morning).
On the bond market, U.S. Treasury yields have jumped following the ADP and ISM releases: the 10-year is up +5.5 basis points to 4.145%, the 30-year is up +4.3 points to 4.714%, and the 2-year is up +3.3 points to 3.618%. The German 10-year Bund yield is up +1.2 points to 2.665%, the French OAT of the same maturity is up +1.4 points to 3.448%, and the Italian BTP is up +1.87 points to 3.415%.
As markets await the afternoon release of weekly U.S. oil inventories, Brent crude is down -0.25 to 64.2 USD per barrel.
In French corporate news, Rubis reported a 3% drop in revenue for the third quarter of 2025, including a 1% decline in retail marketing and a 17% decrease in support services, in its core energy distribution activities.
Bouygues reported group net profit of 675 million euros for the first nine months of 2025, weighed down by the exceptional tax on large company profits in France. Without this tax, net profit would have risen 7% to 735 million euros.
Eutelsat announced the appointment of Sébastien Rouge as Chief Financial Officer and member of the group's executive committee, under the direction of CEO Jean-François Fallacher. The appointment takes effect February 1, 2026.
Finally, Oxford Nanopore Technologies and bioMérieux announced the launch of AmPORE-TB, a sequencing solution for research use only, designed to rapidly identify antibiotic-resistant tuberculosis.
