The CAC 40 Index Closes 0.96% Lower

The CAC 40 Index fell -75 points or 0.96 percent on Friday to close at 7695 points. Leading the losses are Schneider Electric (-4.79%), Legrand (-2.56%) and ArcelorMittal (-2.25%). Top gainers were Pernod Ricard (8.06%), Edenred (2.86%) and Air Liquide (0.99%).

The CAC 40 fell 0.9% to close at 7,702 on Friday to extend its losses as escalating Middle East tensions and surging energy costs overshadowed diplomatic efforts. While President Trump pushed a strike deadline on Iranian infrastructure to April 6 the potential deployment of 10,000 additional US troops intensified fears of a direct ground conflict and structurally higher inflation. Crude oil remaining near 2022 highs has reinforced the hawkish stance of ECB President Christine Lagarde who suggested rate hikes remain possible if energy volatility persists. Most components closed in the red with notable losses in Schneider Electric 3.8% and Legrand at 2.8% while luxury giants LVMH and Hermes dropped 0.6% and 1.2% respectively. Additional pressure came from STMicroelectronics falling 2.7% and Saint-Gobain losing 1.5%. On the other hand, Pernod Ricard surged 7.9% following news it is in active merger discussions with American spirits giant Brown-Forman.

The CAC 40 fell 0.5% to 7,735 on Friday, extending losses from the previous session as concerns over prolonged Middle East tensions outweighed earlier hopes for de-escalation. President Donald Trump stated he would extend a pause on attacks against Iran’s energy infrastructure into April, describing talks with Tehran as “going very well.” However, reports of a possible deployment of 10,000 additional US troops raised fears of a ground conflict. Fragile energy supplies kept oil prices elevated, stoking inflation worries and supporting expectations that major central banks may raise interest rates. ECB President Christine Lagarde indicated the eurozone could see a rate hike if the conflict pushes inflation higher for an extended period. Among individual stocks, notable losses were posted in LVMH (-0.4%), TotalEnergies (-0.8%), Legrand (-1.3%), Saint-Gobain (-1.2%), and STMicroelectronics (-2%). Over the week, the benchmark index remains on track to post a weekly gain.