The CAC 40 Index Closes 1.07% Lower

The CAC 40 Index decreased -86 points or 1.07 percent on Monday to close at 7908 points. The decline was led by TP (-5.39%), ArcelorMittal (-3.88%) and Dassault Systemes (-3.76%).

The CAC 40 pared earlier deep losses to close 1% lower at 7,908 on Monday, as intervention talk from G7 finance ministers provided a late-day cushion against surging energy costs. While the index initially plummeted 2.5% to hit five-month lows, a retreat in WTI crude from a peak of nearly $120 back toward the $100 threshold helped stabilize sentiment. However, luxury and consumer heavyweights remained under pressure with L'Oréal falling 2.2% and LVMH dropping 0.9%, as the threat of a regional conflict involving Iran continues to cloud the outlook for global discretionary spending. Industrial and technology sectors also struggled, Schneider Electric lost 1.7% and Dassault Systèmes tumbled 3.4%. Conversely, the defense and energy sectors saw gains with Thales adding 2.6% and TotalEnergies gained 1.3% as Brent prices remained elevated due to output cuts in the Persian Gulf. Traders are now bracing for more aggressive ECB tightening as euro area inflation risks intensify.

The CAC 40 dropped 2.5% to around 7,790 points on Monday, marking a three-session losing streak and its lowest level in more than five months, as surging oil prices deepened inflation concerns amid the escalating Middle East war. Oil prices climbed above $100 per barrel as fears grew that the widening conflict could disrupt shipping routes and global energy supplies. This has revived worries about persistent inflation across the euro area, prompting traders to increase bets that the European Central Bank may tighten policy further. Markets now price in two 25-basis-point rate hikes this year, up from expectations of just one late last week. Nearly all sectors traded in the red, with industrials, tech stocks and banks leading the declines. Heavyweights, such as Schneider Electric, Airbus, Safran, and BNP Paribas dropped between 3% to 5%.