The Paris stock exchange managed to contain its losses to around -0.5% to -0.6% for much of the session--despite steep plunges in Legrand (-11%), Kering (-3%), and Dassault Systèmes (-2.8%). However, the opening of Wall Street brought a 'cold shower' effect, sending the CAC40 tumbling by -1.2% to around 7,980 points. The selloff spared no other European markets, with the Euro Stoxx 50 down -0.8% and the DAX40 off -0.9%.
While investors have been scrutinizing the lofty valuations of U.S. AI-related stocks, they are now questioning signs of weakness in other sectors. According to Challenger's monthly survey, job cuts in October hit their highest level in 22 years. The ongoing U.S. government shutdown is beginning to impact economic growth, as administrative delays stall business activity and block new initiatives. Yet, it is the private sector that is seeing an unusually high number of layoffs.
Wall Street reopened in the red: the S&P 500 and Dow Jones both slipped by -0.6% to -0.7%, while the Nasdaq fell -1.2%--further fueling the negative sentiment in Europe.
It is now increasingly uncertain whether the CAC40 can hold the psychologically important 8,000-point threshold, or the Euro Stoxx 50 can maintain 5,600 points.
Among today's key events, the Bank of England dashed hopes of an interest rate cut, maintaining its repo rate at 4%. The central bank prefers to wait for new economic indicators before making a decision at its December meeting.
In Germany, industrial production rose by 1.3% in volume in September 2025 compared to the previous month, according to seasonally and calendar-adjusted Destatis data, after a revised drop of 3.7% in August (initially estimated at -4.3%).
On the bond market, 10-year German Bund yields eased by -2 basis points to 2.654%, while French OATs of the same maturity fell by just -1 point to 3.447%. Across the Atlantic, risk aversion returned after a spike in yields Wednesday night (the U.S. 10-year rose +7 points to 4.16%). The 2035 T-Bond yield eased by -6.7 points to 4.0930%, and the 30-year fell by -5.5 points to 4.682%.
In energy markets, Brent crude reversed course from +1% at $64.2 to -0.7% at $63. On the forex front, the euro gained 0.25% against the U.S. dollar, trading at 1.1525 USD. In cryptocurrencies, Bitcoin slipped -2% to $102,000, while Ethereum dropped -2.5% to $3,330.
In corporate news, Legrand reported a 7% rise in group net profit to EUR892.3 million for the first nine months of 2025, with an adjusted operating margin of 20.7% after acquisitions (+0.1 point to 20.6% before acquisitions). The group confirmed its 2025 target for sales growth (organic and via acquisitions, excluding currency effects) between +10% and +12%, and an adjusted operating margin (post-acquisitions) of 20.5% to 21% of sales.
Veolia reported 'solid results in line with annual targets' for the first nine months of 2025, including a 7.9% organic increase in current EBIT to EUR2.74 billion and a 5.4% organic rise in EBITDA to EUR5.08 billion.
Engie now estimates its 2025 group recurring net income will be at the upper end of its EUR4.4 to EUR5 billion range, with EBIT excluding nuclear in the upper half of the EUR8 to EUR9 billion range.
ArcelorMittal expressed optimism for its 2026 outlook after beating market expectations in Q3. The world's largest steelmaker posted an EBITDA of $1.51 billion, down from $1.58 billion a year earlier but above the consensus of $1.46 billion, sending its shares sharply higher in early Paris trading.
Air France-KLM shares plunged following the release of quarterly results that fell short of expectations, prompting significant profit-taking after the stock's strong gains earlier this year. The airline reported a 2.6% increase in revenue year-on-year to EUR9.2 billion.
Vallourec announced it has once again been selected by TotalEnergies to supply casing and production tubes, along with associated accessories, for the drilling of 48 wells as part of the Associated Gas Upstream Project 2 ('AGUP2') in Iraq.
