CAC 40 futures drop before session

Approximately forty minutes before the start of the session, the CAC 40 futures contract fell by 0.55%, indicating early signs of investor caution ahead of the trading day.

Paris index closes higher the previous day

The previous day, the flagship Paris index had closed up 0.58%, or 45.48 points, ending at 7,873.11 points, showing a modest rebound despite broader market concerns.

Semiconductor sector faces valuation doubts

John Plassard, head of investment strategy at Cité Gestion Private Bank, notes that markets are constrained by "the correction (...) of semiconductors, as investors begin to question high valuations," highlighting growing skepticism about the sector's future profitability.

Semiconductors drive global markets

The semiconductor sector is one of the drivers of global stock markets, as these companies are the main beneficiaries of the massive investments by tech giants in artificial intelligence (AI), which has fueled rapid growth in recent years.

Investors doubt long-term AI profitability

However, investors are increasingly doubting the medium- and long-term profitability of these expenditures, as no viable business model has yet been found by AI companies, leading to concerns about the sustainability of current valuations.

U.S. inflation data raises rate hike fears

The previous day, the publication of higher-than-expected inflation in the United States in September further reignited fears of a rate hike by the U.S. Federal Reserve, as early as the next meeting in October, adding to market uncertainty.

Higher interest rates threaten tech financing

This is feeding "concerns regarding the financing of technological infrastructure, in an environment where the cost of capital remains particularly high," John Plassard explains, noting that rising rates could increase borrowing costs for technology companies.

Asia markets fall sharply overnight

In Asia, stock indices in Seoul and Tokyo, where these companies represent a significant portion of the market, fell more than 8% and more than 5% respectively during the night, reflecting global investor sentiment.

Investors await key inflation data

Investors are now awaiting the producer price index (PPI) inflation figures in the United States, at 2:30 PM (Paris time), and will also monitor the final estimate of the price index for September in France, at 8:45 AM, to gauge future monetary policy directions.

Pernod Ricard reports revenue decline

Among the stocks to watch: Pernod Ricard, the spirits giant, saw its revenue decline by 6% in the first quarter of its 2026/27 fiscal year, marked by a decline in China and the United States, as well as a perimeter effect linked to several divestitures.

Savencia sees revenue growth

Savencia, the cheese maker, recorded an increase in revenue for the first three quarters, driven by its chocolate activities, while cheeses have integrated the context of falling milk prices, offering a contrast to the broader sector challenges.