French equities have moved into positive territory on Wednesday morning, following encouraging signals from other European markets. This optimism is driven by anticipated interest rate cuts from both the European Central Bank and potentially several reductions by the Federal Reserve within the year.
Despite this upbeat sentiment, the market's gains are somewhat tempered by concerns over potential trade tariffs imposed by the Trump administration. In the absence of new economic data, investors remain somewhat cautious, refraining from making major financial commitments.
President Trump has reiterated his intention to levy tariffs on European imports and hinted at the possibility of an additional 10% tariff on Chinese imports commencing in February.
Valdis Dombrovskis, the European Union Commissioner for the Economy, has stated that Europe will respond proportionately to any tariffs imposed by the United States.
Additionally, investor attention is drawn to the proceedings of the World Economic Forum in Davos, Switzerland.
The CAC 40 index is currently up by 60.00 points, or 0.77%, standing at 7,830.95. This level marks a near seven-month high for the benchmark.
Among the gainers, Schneider Electric and Dassault Systèmes have seen increases of 2.7% and 2.5%, respectively. Renault has climbed by 2.3%, while Legrand is up by 2%.
Essilor, Safran, and Bouygues have posted gains of 1.8%, 1.6%, and 1.5%, respectively, with Accor, Eurofins Scientific, Edenred, Hermès International, AXA, and Société Générale each advancing between 1% and 1.2%.
Conversely, Carrefour shares have declined about 1.4%, reaching a near seven-month low. Vivendi is down by 1.2%, and ArcelorMittal has edged lower by 0.8%. Additional modest declines are noted in STMicroelectronics, Crédit Agricole, Engie, and BNP Paribas.
