The CAC 40 Index Closes 0.91% Lower

The CAC 40 Index fell -74 points or 0.91 percent on Friday to close at 7972 points. Leading the losses are STMicroelectronics (-6.63%), ArcelorMittal (-2.82%) and Accor (-2.73%). Top gainers were Thales (1.90%), TotalEnergies SE (1.26%) and Dassault Systemes (0.51%).

The CAC 40 index fell 0.7% to close at 7,994 on Friday as the persistent threat of an energy crisis and regional instability in the Middle East overshadowed a brief morning rebound. While luxury heavyweights like LVMH and Kering initially rose on hopes of stabilizing oil supplies they ultimately succumbed to a broader sell off driven by concerns that a prolonged US-Israeli conflict with Iran will dampen global discretionary spending. This cautious sentiment was reinforced by preliminary data showing Eurozone inflation accelerated to 1.9% in February which has prompted markets to price in a 63% probability of an ECB rate hike by the end of the year. Despite the general market retreat, defense contractor Thales climbed 2.1% after reporting earnings that exceeded expectations while TotalEnergies gained 1.8% as Brent crude surged to around $90 per barrel. The weekly decline of nearly 5% marks the sharpest drop for the Paris benchmark since last April.

The CAC 40 rose 0.3% to 8,069 on Friday, rebounding from a near three-month low in the previous session as softer oil prices boosted market sentiment. The US granted India a 30-day waiver to continue purchasing Russian oil, a move aimed at stabilizing supply as the escalating Middle East conflict disrupts global energy markets. Still, geopolitical tensions continued to dominate the fragile market as the US-Israeli offensive against Iran entered its seventh day with no signs of de-escalation. As a result, investors remained wary of elevated inflation pressures, fueling expectations of a more hawkish stance from the ECB. Defense stocks were among the standout performers, with Safran gaining 1.3%, Thales climbing 2.1%, and Airbus rising 0.9%. Luxury stocks also posted solid gains, with LVMH, Hermès, and Kering rising between 0.8% and 1.6%. Despite Friday’s rebound, the CAC 40 remains on track for a notable weekly decline, which would snap a streak of four consecutive weeks of gains.