The CAC 40 Index Closes 1.38% Lower

The CAC 40 Index dropped -112 points or 1.38 percent on Thursday to close at 8055 points. Losses were led by ArcelorMittal (-6.67%), Thales (-5.98%) and Safran (-3.58%).

France's CAC 40 tumbled 1.5% to close at 8,046 on Thursday, a nearly three-month low as the escalation of military operations in the Middle East and the closure of the Strait of Hormuz triggered a broad retreat from European equities. Mounting geopolitical instability drove energy costs higher while fueling expectations that the European Central Bank will maintain restrictive rates to combat pro-inflationary pressures. Luxury leaders LVMH and Hermes dropped roughly 1% as the threat of 15% global US tariffs compounded concerns over weakening discretionary demand. Industrial firms Schneider Electric and Safran saw sharp declines exceeding 2% due to projected supply chain disruptions and rising input costs. Financials including BNP Paribas and Societe Generale fell over 2.6% as markets weighed the impact of heightened credit risks. In contrast STMicroelectronics and Pernod Ricard managed modest gains as selective buyers sought shelter in defensive and tech sectors.

The CAC 40 fell 0.7% to 8,111 on Thursday, reversing gains from the previous session and hitting a more than one-month low, as market sentiment remained fragile amid escalating tensions in the Middle East. The US-Israeli military operation against Iran has now entered its sixth day, with both sides also signaling the potential for intensified attacks in the coming days. Reports suggested Iran had reached out to the US to explore possible peace talks, though authorities in Tehran later denied the outreach. Adding to market uncertainty, investors weighed US President Donald Trump’s recent 15% global tariff, set to take effect later this week. Luxury stocks were among the biggest decliners, with LVMH, Hermès, and Kering falling between 0.5% and 1.3%. Banking stocks also underperformed, as BNP Paribas, Crédit Agricole, and Société Générale declined between 0.8% and 1.6%. In contrast, STMicroelectronics (4.3%), Airbus (1.4%), and Pernod Ricard (0.4%) were among the few gainers.