French Stocks Subdued Amid Trade Worries and Renault's Profit Warning

French stocks are subdued on Wednesday, with the CAC 40 index up 0.09% despite Renault's 17% decline after the company issued a profit warning. ASML Holding also reported weak earnings. Renault's first-half revenue was in line with expectations, but the operating margin fell short, leading to a reduced full-year margin forecast. Other stocks such as Stellantis, ArcelorMittal, and Kering are also down.

French stocks are subdued on Wednesday, with the CAC 40 index up 0.09% despite Renault's 17% decline after the company issued a profit warning. ASML Holding also reported weak earnings, contributing to the overall market downturn.

Renault shares plummeted 17% after the automaker cut its annual guidance, marking the steepest one-day drop since the start of the pandemic. The company attributed the revised forecast to deteriorating automotive market trends, increasing commercial pressure from competitors, and a slowdown in the retail segment. Renault's operating margin guidance for 2025 was lowered from at least 7% to 6.5%, and the company aims for a free cash flow between €1 billion to €1.5 billion, down from at least €2 billion previously [1].

ASML Holding shares slid after the Dutch supplier of chip-making equipment warned about potential growth uncertainty in 2026, citing increasing tariff uncertainty from President Trump's trade policies. The company's warning comes days after Trump threatened 30% tariffs on imports from the European Union [2].

Other French stocks also experienced declines. Stellantis is down 4% after scrapping its hydrogen fuel cell technology program. ArcelorMittal, Kering, and Edenred are down between 1.9% and 2.5%. STMicroelectronics, Saint Gobain, LVMH, Schneider Electric, Unibail Rodamco, Michelin, and Legrand are down with moderate losses. Among the gainers, EssilorLuxottica is up 1.8%, Hermes International is climbing 1.2%, and Sanofi is up 1.1% [3].

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References:
[1] https://finance.yahoo.com/news/renault-shares-crash-17-automakers-083204494.html
[2] https://www.wsj.com/articles/asml-narrows-guidance-amid-tariff-uncertainty-warns-on-2026-growth-ab27ad6d?gaa_at=eafs&gaa_n=ASWzDAizPDW9m0-u2V5V41ZM7HGHnKNFSOSf28rvqbKYGKwWLPr170WraiX5&gaa_sig=JfuJjlcy9GYPnTJYVpYx7xSte9suLGcRlQP0NUdoj-Kf9LJWK8JEq8J3fYAMYpUwiB8ztNtsyTcpEgI_83BCpg%3D%3D&gaa_ts=68777951
[3] https://www.nasdaq.com/articles/cac-moves-tight-range-lackluster-trade-renault-tanks-over-17