Paris stock Exchange opens lower amid Alstom plunge

“European markets should open slightly higher, in a context of stabilization of investor sentiment after the sharp correction of US technology stocks at the end of last week,” estimated John Plassard, head of investment strategy at Cité Gestion.

US markets experienced significant losses on Friday, with the Nasdaq, heavily weighted with technology stocks, falling by 2.84% and the S&P 500 dropping 1.83%. This decline was driven by a collapse in Intel’s stock (-29%) and concerns about the profitability of massive investments in artificial intelligence (AI). According to Ipek Ozkardeskaya, analyst at Swissquote, “Unless the United States and other markets heavily exposed to technology manage to rekindle investor appetite for AI, the rotation towards cheaper, less technology-focused markets could continue, benefiting European stock exchanges.” John Plassard added that falling oil prices, fueled by hopes of a continuation of diplomatic efforts between Washington and Tehran, are also helping to ease inflation concerns.

The price of Brent North Sea crude oil, a global benchmark, was down 3.02%, at $110.01, around 8:20 AM. This followed reports from Axios indicating that US President Donald Trump wants to prioritize diplomacy before deciding whether to resume strikes against Iran after the midterm elections.

“Finally, investors should remain cautious as we approach the US midterm elections, which could accentuate volatility in the coming sessions,” said Plassard.

In France, Fitch maintained the country’s rating at A+ on Friday evening, but with a negative outlook. The spread between French (4.97%) and German (3.32%) ten-year bond yields, which measures investor distrust of French debt, stood at 1.65 points on Friday.

Among the stocks to watch, Alstom, the French rail manufacturer, drastically lowered its annual forecasts on Monday following poor first-half results due to production difficulties with its Coradia Max train program for Germany. The stock has plunged nearly 30% this morning.

Euronext, the pan-European stock exchange operator which manages the Paris Stock Exchange, announced on Monday its intention to appoint David Knibbe, current CEO of NN Group, as its next CEO to succeed Stéphane Boujnah in May 2027.

Forvia, the French automotive supplier, reported quasi-stable revenue in the third quarter on Monday, in a contracting industry, and confirmed its annual targets.