2025.12.3114:53:49UTC+00CAC 40 Lags Europe Despite 10% 2025 Gain

The CAC 40 finished 0.3% down at 8,145 on the last trading day of 2025, concluding the year with an approximate 10% increase. Paris underperformed compared to other European markets, affected by political instability, escalating debt worries, and rising bond yields. The index's most recent intraday peak was recorded at 8,258.9 on October 21. Within sectors, the financial sector led the growth, propelled by a resurgence in earnings and substantial share buybacks: Société Générale saw a 153% increase for the year, BNP Paribas advanced by 36%, and Crédit Agricole climbed 31%. Defense stocks also performed strongly, with Thales surging 65% amidst rising geopolitical tensions and augmented government expenditure. Conversely, consumer-oriented stocks lagged. Stellantis experienced a 26% decline due to escalating competition in China, leadership disruptions, and excessive inventory levels in the U.S. Pernod Ricard dropped 33%, marking it as the poorest-performing consumer stock within the CAC 40, as sales weakened in China and the United States. Other significant decliners included Edenred, which fell 40%, Dassault Systèmes, down 28%, and TP, which decreased by 26%.