23.12.202509:04:21UTC+00CAC 40 Dips as Investors Eye French Stopgap Budget

The CAC 40 experienced a slight decline of 0.2%, settling at approximately 8,110 on Tuesday. This dip follows a modest pullback observed in the previous session as investors maintained a cautious stance ahead of the upcoming Christmas holiday amid ongoing political uncertainties. Notably, the French Prime Minister is advocating for a provisional emergency budget law designed to avert a partial government shutdown projected for early 2026. This special budget proposal has been forwarded for parliamentary consideration and is anticipated to be approved soon, with extensive budget discussions scheduled to reconvene in January.

In the trading landscape, consumer-related stocks experienced downturns, including Kering (-0.9%), Hermès (-0.4%), Pernod Ricard (-0.3%), Michelin (-0.4%), and L'Oréal (-0.1%). The banking sector also saw a downward trend with Société Générale (-0.6%), Crédit Agricole (-0.2%), and BNP Paribas (-0.1%) recording losses. Additionally, shares in Capgemini (-1.56%), ArcelorMittal (-1.0%), and Renault (-0.7%) also declined.

Conversely, there were notable gains with Stellantis rising by +0.7%, followed by Edenred at +0.5% and Airbus at +0.4%, marking the day's upward movers.