French Stocks Decline Amid Rising Tariff Concerns

French stocks see a decline, driven by new U.S. tariffs impacting markets. Despite negative sentiment, Thales reported an increase in net income and positive outlook for fiscal 2025.

Date: 04-03-2025

AI Rating: 5

**Market Overview**
French stocks experienced a decline, with the benchmark CAC 40 falling by 110.44 points or 1.34%. The negative sentiment was largely attributed to new U.S. tariffs on Canada, Mexico, and China. This trade tension could lead to broader implications on stock prices for companies impacted by these tariffs.

While many companies are seeing stock price drops, **Thales** marked a notable exception with a **9% increase**. Thales reported an **adjusted net income** of **1.90 billion euros** for fiscal 2024, an improvement from **1.77 billion euros** the previous year. This rise in net income indicates a **positive financial performance** and might boost investor confidence in Thales despite broader market concerns.

Thales also issued its **fiscal 2025 outlook**, predicting **organic sales growth** of **5% to 6%**, with sales expected between **21.7 billion euros and 21.9 billion euros**. Additionally, the company anticipates an **adjusted EBIT margin** of **12.2% to 12.4%**. These figures demonstrate strong projected growth, which could positively affect Thales’s stock performance moving forward.

Other companies are not faring as well, with **Stellantis** down **6.5%**, **ArcelorMittal** down **4.7%**, and several other major corporations like **STMicroElectronics**, **Renault**, and **Kering** seeing declines in the **2% to 4.7%** range. This widespread decline reveals a cautious investor sentiment amid the ongoing trade tensions.

Overall, the interplay of tariff news and individual company performance, like that of Thales, will be crucial for stock investors to monitor.

Stocks: STM RNO KER AM TSLA