French stocks experienced an upswing on Thursday, with optimistic earnings reports overshadowing indications of economic frailty. According to survey data from S&P Global, France's private sector contracted once more in October, with both manufacturing and service sectors reporting diminished output.
The flash composite output index unexpectedly declined to a nine-month low of 47.3 in October from 48.6 in September, marking the year's lowest reading. In a separate development, survey data from the statistical office INSEE revealed a significant drop in France's manufacturing confidence.
The business climate index fell to 92 in October, down from 99 in September, diverging notably from its long-term average of 100. Excluding the COVID-19 pandemic period, this represents the most substantial monthly decrease since November 2008.
In the stock market, the benchmark CAC 40 index rose by 55 points, or 0.7 percent, reaching 7,552, after a half-percent decline in the previous session. Hermes International, known for its Birkin bags, surged 2.4 percent following an 11.3 percent increase in third-quarter sales.
Kering, another luxury brand, gained 2.1 percent after reporting growth in third-quarter sales. Telecommunications company Orange advanced 1.9 percent, with third-quarter revenues rising to 9.995 billion euros, up 1.6 percent year-on-year, largely driven by retail service growth.
Renault impressed with a 7.3 percent leap as it announced an unexpected rise in quarterly revenues. Sodexo, a catering company, climbed 5.5 percent after surpassing sales growth forecasts for the fiscal year ending August 3. Danone also fared well, adding 2.8 percent, with Q3 organic revenue growth exceeding market expectations.
In contrast, tyre manufacturer Michelin plunged 6.6 percent after revising its annual sales volume forecast downward.
