CAC 40 Starts November 2025 on Cautious Note After Strong October Performance

• How Did European Markets Perform to Start November?
• Which Stocks Drove Market Action in Paris?
• Why Did Automotive Stocks Outperform?
• What Do the Latest PMI Figures Reveal?
• How Are Currency Markets Reacting?
• What's Next for European Markets?
• Frequently Asked Questions

The Parisian benchmark index opened November with modest losses (-0.14%) following its best monthly performance since January 2025 (+2.85% in October). While European markets showed mixed signals, the automotive sector provided unexpected strength. This analysis dives into the key market movers, surprising PMI data, and what the BTCC research team makes of these developments as we enter the final quarter of 2025.

How Did European Markets Perform to Start November?

The CAC 40 showed hesitation in early November trading, closing at 8,109.79 points (-0.14%) after its impressive October rally. This mirrors the cautious mood across most European indices, with Frankfurt's DAX 30 being the notable exception (+0.23% to 5,674.86 points) thanks to strength in automotive stocks. What's particularly interesting is how manufacturing PMIs across the continent came in better than feared, though still hovering NEAR contraction territory.

Which Stocks Drove Market Action in Paris?

Orange shares edged up 0.14% to €13.855 after announcing a €4.25 billion deal to acquire full control of MasOrange. The French telecom giant plans to complete this transaction by H1 2026. Meanwhile, Ryanair shares jumped 3.96% to €27.29 despite what analysts called "only slightly better than expected" Q2 2026 results. The budget carrier reported transporting 61.2 million passengers (+2% YoY) with a 96% load factor (+1 point).

Why Did Automotive Stocks Outperform?

Mercedes-Benz led the sector with a 1.96% gain to €57.31, breaking a two-day losing streak. The entire automotive sector benefited from China's decision to ease export restrictions on Nexperia's chips - crucial components for European automakers. As the BTCC market strategist noted, "This regulatory relief came just in time for manufacturers struggling with supply chain bottlenecks since mid-2024."

What Do the Latest PMI Figures Reveal?

Eurozone manufacturing PMI hit exactly 50 in October - the breakeven point between expansion and contraction. Germany held steady at 49.6 (vs. 49.5 in September), while France surprisingly improved to 48.8 (expected: 48.3). The southern Eurozone showed the most robust conditions. Across the Atlantic, the U.S. ISM Manufacturing PMI disappointed at 48.7 (vs. 49.4 expected), marking eight consecutive months of contraction. However, the S&P Global US PMI ROSE to 52.5, suggesting domestic demand remains resilient despite trade headwinds.

How Are Currency Markets Reacting?

The euro showed minimal movement against the dollar, trading at 1.1530 (-0.03%). Currency traders seem to be waiting for clearer signals from central banks as we approach year-end. Market data sourced from TradingView shows the EUR/USD pair has been rangebound between 1.1450-1.1600 since mid-October.

What's Next for European Markets?

With October's strong performance behind them, investors appear to be taking profits and reassessing positions. The automotive sector's rebound offers hope, but manufacturing data suggests the Eurozone economy remains on shaky ground. As one BTCC analyst quipped, "The markets are moving like a Parisian driver - alternating between sudden acceleration and abrupt braking."