French Domestic Stocks Defy Political Risks to Beat Exporters

France’s political upheaval was expected to hit domestic stocks the most. In a counter-intuitive twist, they’ve turned into big winners as exporters were hobbled by the threat of US tariffs, a sluggish recovery in China and a stronger euro.

A Goldman Sachs Group Inc. basket of sectors exposed to the French economy has surged more than 30% since President Emmanuel Macron called snap elections in June 2024. That’s beaten the blue-chip CAC 40’s 2.8% advance, and even outperformed the pan-European Stoxx 600 Index.