The CAC 40 Index Opens 1.64% Lower

The CAC 40 reversed early losses to trade 0.7% higher on Monday afternoon, as global sentiment improved. The shift followed comments from President Trump that the US and Iran had held “productive” talks, prompting a five-day pause on strikes against key Iranian energy infrastructure. The move comes ahead of a 48-hour deadline for Iran to fully reopen the Strait of Hormuz. The temporary truce pushed oil prices lower, although Iran’s Fars News Agency said there has been no communication with the US. Most sectors moved into positive territory, with the exception of energy, while industrials led the gains. Among major stocks, LVMH (+2.2%), Schneider Electric (+2.5%), Airbus (+3%), and Safran (+2.2%) advanced. In contrast, TotalEnergies fell 2.6%. Danone, meanwhile, trimmed early losses to trade around the flatline following reports it is set to acquire UK-based fortified drinks maker Huel, as part of its push into the fast-growing functional nutrition segment.

The CAC 40 fell 1.6% to 7,544 on Monday, extending losses from the previous week and marking its lowest level since August 2025, as escalating tensions in the Middle East continued to roil global markets. The conflict has now entered its fourth week, with US President Donald Trump warning of potential strikes on Iranian power plants if the Strait of Hormuz remains closed. In response, Iran threatened to shut the strategic waterway “completely” and target energy and water infrastructure in bordering countries, raising fears of broader regional disruption and energy supply shocks. Most sectors traded lower, with luxury stocks LVMH (-0.5%) and Hermès (-1.6%) leading the declines. Defense names also came under pressure, particularly Airbus (-1.6%), Safran (-2.9%), and Thales (-2.4%). Elsewhere, Danone fell 1% after reports that it will acquire UK-based fortified drinks maker Huel, as part of its strategic push into the fast-growing functional nutrition segment.

The CAC 40 Index is dropping -126 points. Leading the losses are STMicroelectronics (-4.28%), TP (-3.95%) and ArcelorMittal (-3.44%).