FX.co ★ CAC 40 Ends 2025 With Slight Pullback, Posts 10% Annual Gain

On the last trading day of 2025, the CAC 40 index declined by 0.5%, settling around 8,120, as market participants exercised caution ahead of the New Year holiday. Energy sector stocks were at the forefront of this downturn, with TotalEnergies falling by 1.6% and ENGIE dipping by 0.1%. Additionally, shares of luxury brands such as LVMH, L’Oréal, and Kering experienced slight declines of 0.3%, 0.4%, and 0.5% respectively. The banking sector mirrored this trend; Société Générale saw a 0.9% decrease, while Crédit Agricole and BNP Paribas fell by 0.3% and 0.4%. Despite this year-end retreat, the index posted an impressive approximate 10% gain over the course of 2025. This robust performance was underpinned by a stable macroeconomic environment characterized by steady European growth, improved corporate earnings, contained inflation, and an accommodating interest rate setting that alleviated monetary pressures. Further contributing to the index's strength were supportive policies and strong financial results from major companies throughout the year.