French Stocks Fall on Hawkish Rate Outlook

2026-03-11 08:52 By Czyrill Jean Coloma 1 min. read

The CAC 40 fell 0.7% to 8,003 on Wednesday, reversing gains from the previous session and tracking its European peers, weighed down by rising expectations of a European Central Bank rate hike.

ECB Governing Council member Peter Kazimir warned that the Iran conflict and its impact on inflation could force the central bank to act sooner than anticipated, even though the ECB remains in a “good place” with no immediate need to move at next week’s meeting.

Meanwhile, ECB President Christine Lagarde reiterated that the central bank is ready to act to keep inflation in check.

She emphasized its commitment to returning inflation to the 2% medium-term target, particularly as the escalating Middle East conflict drives energy prices higher.

Markets are now pricing in at least one 25 bps hike this year, with some traders eyeing the possibility of two.

The majority of stocks traded in red, with LVMH (-1.1%), Safran (-1.3%), Essilor (-1.4%), and Societe Generale (-1%) among the worst performers.



News Stream
French Stocks Fall on Hawkish Rate Outlook
The CAC 40 fell 0.7% to 8,003 on Wednesday, reversing gains from the previous session and tracking its European peers, weighed down by rising expectations of a European Central Bank rate hike. ECB Governing Council member Peter Kazimir warned that the Iran conflict and its impact on inflation could force the central bank to act sooner than anticipated, even though the ECB remains in a “good place” with no immediate need to move at next week’s meeting. Meanwhile, ECB President Christine Lagarde reiterated that the central bank is ready to act to keep inflation in check. She emphasized its commitment to returning inflation to the 2% medium-term target, particularly as the escalating Middle East conflict drives energy prices higher. Markets are now pricing in at least one 25 bps hike this year, with some traders eyeing the possibility of two. The majority of stocks traded in red, with LVMH (-1.1%), Safran (-1.3%), Essilor (-1.4%), and Societe Generale (-1%) among the worst performers.
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