The CAC 40 Index Opens 2.04% Lower

The CAC 40 plunged 1.9% to around 8,400 on Monday, retreating further from a record high touched last week, as escalating geopolitical tensions in the Middle East rattled global markets. Coordinated US–Israel strikes on Iran and Tehran’s retaliatory actions heightened fears of a broader regional conflict, driving a sharp rise in energy prices and prompting a broad risk-off move across equities. Losses were widespread, with cyclical and growth-sensitive sectors, such as luxury and banking stocks among the hardest hit. Index heavyweights LVMH, Hermes, and Loreal led the declines, down 3% to 4% each, while BNP Paribas fell 3.5%. Meanwhile, defensive and energy names outperformed, with Thales and Dassault Aviation up 5.4% and 3.5%, respectively, while Total Energies advanced 6.5% amid a spike in oil prices. On the data front, markets also await upcoming PMI numbers this week.

The CAC 40 Index is dropping -175 points. Leading the losses are Accor (-9.74%), Stellantis NV (-5.57%) and Kering (-4.35%).

The CAC 40 fell 0.5% to close at 8,581 on Friday, just below recent record levels while still securing a monthly gain of 5.8% for February, as investors weighed a mix of corporate earnings and cooling French economic data. The local economy grew only 0.2% in the final quarter of 2025, which was the slowest pace in three quarters. Inflation accelerated to 1% in February, while producer prices fell 2.3% in January. Schneider Electric rose 1.7% and Sanofi gained 1.5% following positive sentiment, while AXA added 1.4%. In contrast, EssilorLuxottica tumbled 5.4% and Airbus dropped 1.2%. LVMH also struggled with a 1% decline as luxury names faced pressure. Meanwhile, a third round of negotiations in Geneva concluded Thursday without a major step forward to ease tensions or prevent potential US military action.