The CAC 40 Index Closes 1.01% Lower

The CAC 40 Index fell -80 points or 1.01 percent on Friday to close at 7904 points. Leading the losses are Stellantis NV (-4.39%), ArcelorMittal (-4.30%) and LVMH (-4.03%).

The CAC 40 index fell 0.9% to close at 7,912 on Friday, the lowest since September as multiyear high unemployment rate and escalating energy costs in the Middle East stoked fears of a stagflationary environment. This recent rise in the jobless rate to 7.9% has intensified concerns over domestic consumption as the blockade of the Strait of Hormuz pushes oil prices toward 100 dollars per barrel. TotalEnergies climbed 2.7% as energy prices spiked while luxury giants like LVMH and Kering dropped 4.3% and 2.8%, respectively due to waning global demand. Revised inflation data for February rose to 0.9% and reinforced expectations that the European Central Bank will initiate a rate hike as early as June. Banking stocks including Societe Generale also retreated as market participants weighed the impact of tighter monetary policy on a cooling regional economy. The euro weakened generally as the US dollar attracted safe haven flows during the largest wave of strikes yet against Iranian targets.

The CAC 40 fell 1.2% to 7,889 on Friday, extending losses for a third straight session and putting the index on track for a second consecutive weekly decline, as investors weigh Middle East tensions showing no signs of abating. The latest flare-up came as Iran’s new supreme leader, Mojtaba Khamenei, declared the Strait of Hormuz would remain shut, while Tehran escalated strikes on regional oil and transport infrastructure. The recent development, which helped drive another spike in energy prices, continued to raise concerns about inflation in Europe, leading markets to fully price in an ECB rate hike by July, with about an 80% chance of a move as early as June. Domestically, annual inflation rose to 0.9% in February 2026, from 0.3% in January, revising down from an initial estimate of 1%. Most stocks traded lower, with luxury groups LVMH, Hermès, and Kering falling between 1.2% and 2.6%, while banking stocks BNP Paribas, Crédit Agricole, and Société Générale declined 1.5% to 1.9%.