CAC 40 Extends Downturn

2026-03-12 16:56 By Felipe Alarcon 1 min. read

The CAC 40 index fell 0.7% to close at 7,984 on Thursday, as escalating military conflict in the Middle East and renewed trade tensions weighed on European equities.

Defiant rhetoric from Tehran regarding the closure of the Strait of Hormuz, pushed Brent crude toward 100 dollars per barrel and solidified expectations for a European Central Bank rate hike by July.

While energy giants like TotalEnergies (0.6%) and defense firms such as Thales (3%) found support, the broader luxury and financial sectors faced selling pressure.

LVMH and Hermes fell over 1% as investors grew cautious over the impact of potential US trade probes on high end exports.

Major lenders including BNP Paribas, Societe Generale, and Credit Agricole also lagged between 2.9% and 4.1% as the market priced in the dual threats of imported inflation and rising borrowing costs.

These pressures shifted the monetary outlook significantly from early February when traders still anticipated year end rate cuts.



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