French stocks experienced a slight decline on Monday, influenced by the persisting increase in bond yields and diminishing expectations of a rate cut by the Federal Reserve this month. Additionally, investor caution persists due to concerns about U.S. tariffs and a scarcity of new economic data.
As of recently, the benchmark CAC 40 index fell by 65.58 points, or 0.88%, reaching 7365.46.
Notably, STMicroelectronics shares have dropped over 4%. Other stocks, including Unibail-Rodamco-Westfield, Schneider Electric, Stellantis, Publicis Groupe, Saint-Gobain, ArcelorMittal, Capgemini, Safran, Hermès International, Airbus Group, Edenred, and Legrand, have decreased by 1% to 2.5%.
Conversely, Engie is showing a rise of about 1.7%, while Bouygues is up by 1.2%. Orange, TotalEnergies, Crédit Agricole, Vivendi, Carrefour, and Société Générale are seeing increases between 0.5% and 1%.
Investor sentiment in European markets is negatively impacted by a sell-off on Wall Street last Friday, following positive employment data that heightened concerns over interest rates. All major U.S. indices closed significantly lower; the Dow Jones Industrial Average fell by 1.63%, the S&P 500 decreased by 1.54%, and the Nasdaq dropped by 1.63%.
The Labor Department reported that non-farm payroll employment in the U.S. surged by 256,000 in December, following a revised increase of 212,000 jobs in November. Economists had anticipated a rise of 160,000 jobs, compared to the originally reported addition of 227,000 jobs for the previous month.
The U.S. unemployment rate edged down to 4.1% in December from 4.2% in November, whereas it was expected to remain unchanged.
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