European stock markets are experiencing a period of stagnation, largely due to the absence of US traders on holiday for Thanksgiving. The day’s trading remained largely uneventful, characterized by a consistent back-and-forth movement surrounding the previous day’s closing levels. By the end of the session, the Paris Stock Exchange saw a modest increase of 0.05%, finishing above the critical pivot point of 8,100 points. Contributing positively to this uptick were major players such as Pernod Ricard, which rose by 2.4%, and BNP Paribas, up 1.4%. Other notable gainers included Stellantis and Renault, both posting a 1% increase. However, some luxury brands weighed down performance, with Kering and Hermès dropping by 1% and 1.7%, respectively.
Trading volumes remained low, with less than €950 million exchanged in CAC stocks. The US markets, prior to their holiday break, recorded a fourth consecutive day of gains, driven by hopeful projections regarding a potential rate cut by the Federal Reserve on December 10. The S&P 500 reached within 90 points of its all-time high, notably gaining between 4% and 4.5% over the preceding sessions, effectively closing gaps left in the market since mid-November.
Despite these gains, European indices have yet to recover from declines seen since late October. The DAX index is down 5.5%, while the EURO STOXX 50 and CAC have decreased by 4.5% and 3.5%, respectively. Analysts suggest that the traditional year-end rally, which is frequently observed at this time of year, might commence shortly—both in Europe and the US. Historical data points to December being a favorable month for the S&P 500, which typically sees average returns between 1.4% and 1.5%.
On the macroeconomic front, today’s agenda appears limited due to the closure of US markets. Investors are particularly keen on the anticipated minutes from the last European Central Bank (ECB) meeting, although expectations are low for any surprises. The GfK index, a key gauge of German consumer sentiment, revealed minimal change, improving slightly from -24.1 to -23.2 for December—a level still indicative of significant consumer unease.
In the bond market, the 10-year OAT hovered around 3.41%. Meanwhile, the German Bund saw slight fluctuations, settling at 2.676%. Brent Crude oil remained stable, trading at approximately USD 63.1 per barrel, as US markets remained closed. This absence of US currency traders was also notable in the forex market, where the euro maintained relative stability against the dollar, fluctuating around USD 1.159 to 1.1600.
In corporate news, Trigano’s stock surged by 13% following the release of its financial results, which, while showing a net profit decline of 36.1%, were better than investor expectations. Similarly, Rémy Cointreau reported a 31.3% drop in net income, alongside a 13.6% drop in current operating income for the first half of the financial year 2025-26.
In a promising development, Kaleon, renowned for promoting and preserving cultural heritage, announced a successful IPO on both Euronext Growth Milan and Euronext Paris, raising €16.5 million, with the possibility of increasing this to €18 million if the over-allotment is exercised. Additionally, the AI platform Prisme.ai revealed a strategic collaboration with Bouygues Telecom aimed at creating a new “Studio IA” environment to enhance AI utilization among the operator’s employees.
