Monthly review - October 2025 - American artificial intelligence vs real French stupidity

US equities, buoyed by players in the GenAI revolution and a slight recovery of the dollar against the euro, slightly outperformed European equities in October. In Europe, the rise in equities was modest but relatively widespread, with the exception – once again – of German equities. Even the CAC40 rose, benefiting from reduced political risk (no dissolution in the short term) despite a budget debate that produced its share of economic incongruities every day. In Europe, utilities, basic resources and energy led the way, while automotive and media continued to struggle. Tomorrow, we will be closely following the end of the earnings season and the outcome of the French budget debate, while waiting to be able to analyse the US data once the shutdown ends...