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    Business confidence in France stays steady at 96, with minor differences in services and industrial ratings.

    by VT Markets
    /
    Sep 19, 2025
    France’s business confidence for September stayed the same at 96, according to the latest data from INSEE. This number is unchanged from last month. In the services sector, confidence rose to 98, up from 96. On the other hand, industrial confidence dipped slightly to 96 from 97.

    French Business Confidence

    French business confidence is stable at 96, which is below the long-term average of 100. This indicates that the overall economy isn’t growing or shrinking much. For traders, this suggests that the CAC 40 index is likely to stay within the narrow trading range seen for most of the third quarter of 2025. A key point is the difference between the rising services sector, now rated at 98, and the declining industrial sector, down to 96. This suggests a two-speed economy where consumer-focused businesses are doing better than manufacturers. This situation presents opportunities for pairs trades, such as buying calls on service-oriented companies while buying puts on industrial names. This report offers little motivation for the European Central Bank to change its current wait-and-see stance, especially since Eurozone inflation has eased to 2.5% earlier this year in 2025. We expect the ECB to keep interest rates steady at its next meeting. Therefore, using options strategies on the Euro, such as selling strangles on EUR/USD futures, could be a good way to profit from low currency volatility.

    Market Implications

    The unchanged headline number eliminates a potential trigger for a major market shift. Implied volatility on European stocks, as shown by indices like the VSTOXX, has dropped over 8% in the past month, suggesting it may continue to fall. Selling VSTOXX futures or writing options on the Euro Stoxx 50 could be a strategy to take advantage of this anticipated calm. Create your live VT Markets account and start trading now.

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