CAC 40 Shows Caution Amid a Struggling European Market in October 2025

• How Did the CAC 40 Perform Amid Global Uncertainties?
• Why Did BBVA’s Hostile Takeover of Sabadell Collapse?
• What Drove EssilorLuxottica’s 12.98% Surge?
• How Did Virbac Outperform the SBF 120?
• What Do the Latest Eurozone Inflation Figures Reveal?
• Why Are French Business Start-Ups Declining?
• FAQs: Your Burning Questions Answered

The Paris Stock Exchange staged a partial recovery after an early slump, buoyed by Donald Trump's announcement of an upcoming meeting with China's president, easing Sino-U.S. trade tensions. However, fragility persisted due to concerns over two U.S. regional banks. The CAC 40 dipped 0.18% to 8,174.20 points but posted a weekly gain of 3.24%, while Germany’s DAX fell 1.76%. Highlights include BBVA’s abandoned hostile bid for Sabadell, EssilorLuxottica’s stellar 12.98% surge, and Virbac’s strong Q3 performance. Eurozone inflation rose to 2.2% annually, and the euro weakened against the dollar. Let’s dive into the details.

How Did the CAC 40 Perform Amid Global Uncertainties?

After opening sharply lower, the Paris Bourse clawed back losses following Donald Trump’s confirmation of a meeting with China’s leader in two weeks. This temporarily soothed trade tensions, but lingering worries about two U.S. regional banks kept sentiment shaky. The CAC 40 closed down 0.18% at 8,174.20 points but notched a 3.24% weekly gain—a silver lining in an otherwise jittery European market. Meanwhile, the DAX in Frankfurt slumped 1.76%, reflecting broader regional unease. Analysts at BTCC noted, "The rebound was fragile; investors are still hedging bets."

Why Did BBVA’s Hostile Takeover of Sabadell Collapse?

BBVA’s 18-month saga to acquire Sabadell ended abruptly after its €16.32 billion hostile bid failed to meet minimum acceptance thresholds. Shares of BBVA jumped 5.98% in Madrid, while Sabadell plunged 6.78%. Last month, BBVA had sweetened its offer by 10% to €3.39 per share, but it wasn’t enough. "This was a high-stakes game, and BBVA overplayed its hand," remarked a BTCC market strategist. The fallout leaves both banks to recalibrate their growth strategies independently.

What Drove EssilorLuxottica’s 12.98% Surge?

The Franco-Italian eyewear giant EssilorLuxottica rocketed to the top of the CAC 40, soaring 12.98% to €312.50 after smashing Q3 2025 revenue expectations. CEO Francesco Milleri called it "the group’s best quarter since inception," with sales up 32% year-to-date. The company’s premium lenses and luxury frames continue to dominate markets, proving that even in downturns, people prioritize vision—and style. Rumor has it their new anti-blue-light glasses are a hit among crypto traders burning the midnight oil.

How Did Virbac Outperform the SBF 120?

Animal health specialist Virbac posted the SBF 120’s second-best gain (+7.23% to €333.50) after reporting a 7.3% revenue jump to €364 million in Q3. Adjusting for currency effects, growth hit 12.5%. The firm raised its annual sales target to 5.5–7.5%, up from 4–6%. "Pets are recession-proof," quipped an analyst. With pandemic-era pet adoptions still paying off, Virbac’s flea treatments and vaccines are in high demand.

What Do the Latest Eurozone Inflation Figures Reveal?

Eurozone inflation edged up 0.1% in September, hitting 2.2% annually—matching forecasts. Core CPI also rose 0.1%, with annual growth at 2.4%, slightly above expectations. The ECB will likely view this as a sign that rate hikes are working, but energy volatility remains a wildcard. Meanwhile, the euro dipped 0.14% to $1.1672, as the dollar flexed its muscles ahead of the Fed’s next move.

Why Are French Business Start-Ups Declining?

France saw a 2.7% drop in new business creations in September, per INSEE data. Micro-entrepreneur registrations nosedived (-3.9%), while traditional incorporations fell modestly (-1.3%). Only sole proprietorships bucked the trend (+2.5%). "High borrowing costs are stifling entrepreneurship," noted a Paris-based economist. It’s a worrying sign for Macron’s pro-business reforms.

FAQs: Your Burning Questions Answered

What caused the CAC 40’s weekly gain despite the drop?

The 3.24% weekly rise was fueled by easing trade tensions and strong performances from heavyweights like EssilorLuxottica, overshadowing the day’s minor dip.

Is BBVA likely to revive its Sabadell bid?

Unlikely. With the minimum acceptance threshold unmet and regulatory hurdles, BBVA is expected to pivot to organic growth or smaller acquisitions.

How reliable are Virbac’s raised targets?

Very. The upward revision reflects consistent demand in the resilient pet care sector, though currency fluctuations remain a risk.