CAC 40 Tumbles at Week's Start

2026-03-02 16:51 By Felipe Alarcon 1 min. read

The CAC 40 index fell 2.2% to close at 8,394 on Monday, amid a broad flight to safety after the escalation in the Middle East.

Market confidence shook after joint US-Israeli strikes on Iran led to the death of its Supreme Leader and the subsequent closure of the Strait of Hormuz.

These events ignited fears of an energy crisis, with TotalEnergies gaining 3.1% as oil prices jumped.

However, these gains were not enough to save the index as luxury giants and banks were hit hard.

LVMH tumbled 4.3%, Hermes fell 4%, L'Oréal dropped 4.1%, and Kering tumbled 5% reflecting worries that a wider war and rising costs will dampen demand.

Financials followed suit, with BNP Paribas and Societe Generale down 3.6%.

While defense firm Thales held steady, the general mood remained grim as investors abandoned growth-sensitive stocks.

The sell-off highlights the market's shift toward protecting capital as geopolitical risks and energy shocks cloud the outlook for the Eurozone's second-largest economy.



News Stream
The CAC 40 Index Closes 2.14% Lower
The CAC 40 Index dropped -183 points or 2.14 percent on Monday to close at 8397 points. Losses were led by Accor (-8.30%), Stellantis NV (-7.11%) and Renault (-5.36%).
2026-03-02
CAC 40 Tumbles at Week's Start
The CAC 40 index fell 2.2% to close at 8,394 on Monday, amid a broad flight to safety after the escalation in the Middle East. Market confidence shook after joint US-Israeli strikes on Iran led to the death of its Supreme Leader and the subsequent closure of the Strait of Hormuz. These events ignited fears of an energy crisis, with TotalEnergies gaining 3.1% as oil prices jumped. However, these gains were not enough to save the index as luxury giants and banks were hit hard. LVMH tumbled 4.3%, Hermes fell 4%, L'Oréal dropped 4.1%, and Kering tumbled 5% reflecting worries that a wider war and rising costs will dampen demand. Financials followed suit, with BNP Paribas and Societe Generale down 3.6%. While defense firm Thales held steady, the general mood remained grim as investors abandoned growth-sensitive stocks. The sell-off highlights the market's shift toward protecting capital as geopolitical risks and energy shocks cloud the outlook for the Eurozone's second-largest economy.
2026-03-02
CAC 40 Drops Nearly 2%
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.
2026-03-02