The CAC 40 Index Closes 0.58% Lower

The CAC 40 Index dropped -46 points or 0.58 percent on Thursday to close at 7801 points. Losses were led by Edenred (-16.43%), Pernod Ricard (-6.54%) and Schneider Electric (-3.95%). Offsetting the fall, top gainers were TP (4.30%), TotalEnergies SE (2.65%) and Sanofi (1.87%).

The CAC 40 fell 1% to close at 7,769 on Thursday as persistent geopolitical instability and hawkish central bank rhetoric deepened a retreat from recent peaks. Market sentiment soured following Iran’s rejection of a 15-point US peace proposal and its refusal to negotiate while the US deployed additional troops to the Middle East. These tensions exacerbated domestic economic concerns as French industry and consumer confidence slipped in March alongside rising household inflation expectations. Financials faced heavy selling pressure with BNP Paribas sliding 2.9% and Societe Generale dropping 2.8% while Credit Agricole lost 2.4%. Luxury and industrial leaders also weighed on the index as Schneider Electric slumped 3.9% and Hermes International fell 1.7%. In contrast TotalEnergies bucked the trend to gain 2.9% as elevated oil prices supported energy producers while Sanofi added 1.4%. Persistent warnings from the ECB regarding rate hikes continue to cloud the market.

The CAC 40 slipped 0.7% to 7,791 on Thursday, breaking a three-day winning streak as investors wrestled with mixed signals of de-escalation in Middle East tensions. US President Donald Trump insisted Iran remains open to a deal, even as Tehran rejected a ceasefire, proposed its own plan, and said it has no intention of negotiating. The market was further pressured by hawkish ECB signals. Policymaker Joachim Nagel said the bank has the option to raise rates at its April meeting, while President Christine Lagarde warned that the ECB could act if Middle East tensions push eurozone inflation higher. Domestically, industry (99 vs. 102 in February) and consumer (89 vs. 91) confidence fell in March 2026, while households’ inflation expectations rose following the outbreak of the Iran conflict. Financial stocks were among the biggest laggards, with BNP Paribas down 0.9%, Crédit Agricole 0.7%, and Société Générale 1.1%.