French stocks experienced a notable increase on Friday morning as investors analyzed French and Eurozone PMI data and responded positively to comments from U.S. President Donald Trump advocating for lower interest rates. A slight reduction in concerns over tariff threats also contributed to the optimistic market sentiment.
The CAC 40, a key stock market index, rose by 80.91 points, or 1.03%, reaching 7,973.52, which marks a level not seen in over seven months.
In terms of major gainers, the luxury brand Kering surged almost 9%, reaching a four-month high. Additionally, LVMH and L'Oreal saw increases of about 3%. ArcelorMittal appreciated by 3.7%, and Pernod Ricard advanced by 3.5%. Other companies such as Renault, Stellantis, Hermes International, Capgemini, and Accor recorded gains between 1.6% and 2.6%. Air Liquide, BNP Paribas, Saint-Gobain, Vivendi, and Carrefour also improved slightly, each rising between 1% and 1.2%.
Conversely, Eurofins Scientific, Danone, Engie, Thales, and Safran demonstrated some weakness in their performance.
Data from S&P Global indicated that the HCOB France Composite PMI slightly increased to 48.3 in January 2025, up from 47.5 in December, surpassing market expectations of 47.7 based on preliminary estimates.
The HCOB Flash France Manufacturing PMI rose to 45.3 in January 2024 from 41.9 in December, marking the least severe contraction in the French manufacturing sector since the previous June. Meanwhile, the HCOB France Services PMI decreased to 48.9 in January 2025, compared to 49.3 in December 2024.
For the Eurozone, the HCOB Composite PMI climbed to 50.2 in January 2025 from 49.6 the previous month, exceeding the forecasted figure of 49.7. The HCOB Flash Eurozone Manufacturing PMI increased to 46.1 in January 2025, up from 45.1 in December, while the Services PMI slightly declined to 51.4 in January from 51.6 in the prior month.
