European Markets Pause at Midday: CAC 40 Slips Amid Economic Watch

Rekt_Recovery · 2026-01-12T18:53:56+00:00

French equities showed a cautious tone as the CAC 40 index dipped 0.29%. Despite an encouraging eurozone employment report, France's trade deficit widened. Defensive stock movements were evident, with notable losses in automotive and materials sectors, while banking and consumer stocks provided some support.

Rekt_Recovery

2026-01-12 18:53:56

Abstract generation in progress

French equities displayed a hesitant tone during midday trading Thursday, with the CAC 40 index retreating 23.59 points to settle at 8,210.33, representing a 0.29% decline. The cautious mood reflected investor attention split between geopolitical developments and anticipation of significant U.S. economic releases.

Economic Data: Mixed Signals on Employment

The euro area delivered a modestly encouraging employment report, with the jobless rate contracting to 6.3% in November from October’s 6.4%, catching markets slightly off guard. Youth unemployment also improved, falling two tenths to 14.6%, though EU27-wide joblessness held steady at 6%.

French trade dynamics painted a different picture, as the nation’s trade deficit expanded to €4.2 billion in December 2025, widening from November’s €3.5 billion figure. The expansion was driven by import growth climbing 2% to €56.4 billion, while export gains proved more restrained at 0.8%, reaching €52.2 billion.

Market Movement: Defensive Positioning Evident

On the downside, automotive and materials names led the retreat. Renault plunged 4.1% to claim the day’s biggest loss, while Saint Gobain declined 3.6%. Steel player ArcelorMittal gave back 2.7%, joined by automotive peer Stellantis at minus 2.6%. Schneider Electric descended nearly 2%, accompanied by smaller drops from industrials like Capgemini, Legrand, Euronext, STMicroElectronics and Bureau Veritas, each shedding 1.2 to 1.7%.

Banking and consumer stocks provided some lift. BNP Paribas climbed 2.15%, while Pernod Ricard advanced 1.5% and Danone rose 1.4%. Financial names Societe Generale and Credit Agricole each gained around 1%, with L’Oreal, Veolia Environment, Orange, Airbus, Sanofi and Engie posting subdued but positive moves.

The cautious midday posture underscores investor hesitation as markets digest competing signals from employment improvements and widening trade deficits, all while awaiting guidance from U.S. data releases ahead.

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