CAC 40 Dips Below 8100 Points Ahead of Central Bank Decisions and US Inflation Data (December 2025)

Why Did European Markets Close Mostly Lower?

European equities ended Wednesday’s session in negative territory (except London’s FTSE) as traders adopted caution ahead of Thursday’s monetary policy decisions from both the European Central Bank and Bank of England. The real action, however, might come from across the Atlantic – November’s US inflation data could significantly influence the Fed’s 2026 rate path. As veteran analyst Mark Douglas from TradingView notes, "This is the calm before the storm. Central banks are walking a tightrope between inflation control and economic growth."

How Did Major Indices Perform?

France’s CAC 40 recorded its second consecutive decline, dipping 0.25% to 8,086.05 points – slipping below the psychologically important 8100 level. The broader EuroStoxx 50 fared worse, dropping 0.58% to 5,684 points. London’s FTSE 100 proved the exception, buoyed by a late rally in consumer staples. "The divergence reflects differing economic outlooks," explains BTCC market strategist Lisa Wang. "While continental Europe faces manufacturing woes, UK services show surprising resilience."

What Caused Euroapi’s 22% Collapse?

The pharmaceutical ingredients specialist became the worst performer on Paris’ SRD market after slashing its revenue guidance. Euroapi now expects 4-6% sales decline (versus previous 1-3% forecast), though maintained its 7-9% EBITDA margin target through cost cuts. At €2.40 per share, the stock has erased all gains since its 2024 IPO. "This warns of broader pharma sector pressures," observes Bank of America’s healthcare team. "Generic drug pricing and inventory adjustments are biting."

Which Stock Defied the Market Trend?

Société Générale surged 3.95% to €66.90, topping the CAC 40 for the third straight session. The rally followed its inclusion in Bank of America’s prestigious "Europe 1" conviction list and long-term "25 Stocks for 2026" portfolio. Analysts see 30%+ upside potential, citing the bank’s successful restructuring and emerging markets exposure. As one London-based hedge fund manager quipped, "Finally, French banks are getting their mojo back after a decade in the wilderness."

What Were the Key Macro Developments?

• UK Inflation: Fell unexpectedly to 3.2% annually (vs 3.5% forecast), with monthly deflation of 0.2%
• German Business Climate: Ifo index dropped to 87.6 (vs 88.2 expected), signaling economic fragility
• Eurozone Inflation: Held steady at 2.1% annually in November 2025
• US Oil Inventories: Crude stocks fell 1.274M barrels (less than 2.4M expected)

Corporate Spotlight: Diageo’s African Exit

The spirits giant (-0.24%) sold its Kenyan subsidiary to Japan’s Asahi for $2.3 billion, relinquishing control of East African Breweries. The MOVE continues Diageo’s strategic shift toward premium Western brands. "They’re trading emerging market volatility for developed market stability," notes a Bernstein analyst. The deal includes Asahi acquiring 53.68% of UDVK spirits producer, with EABL keeping the remainder.

Market Technicals and Currency Moves

As of 5:40 PM CET, the euro edged up 0.03% to $1.1753. TradingView charts show the CAC 40 testing its 100-day moving average (8,072) – a break below could signal further downside. "The 8,000 level becomes crucial support," warns BTCC’s technical team. "A weekly close under that WOULD invalidate the November rally."