French Stocks Edge Down on Middle East War Uncertainty

The CAC 40 fell 0.2% to 8,246 on Thursday, marginally trimming the 4.5% surge from yesterday as European markets turned cautious amid fragile US–Iran peace prospects. Tensions lingered as the Strait of Hormuz remained largely disrupted, and Israeli strikes on Lebanon prompted Iran to threaten withdrawal from the deal. US President Trump warned of renewed escalation if a broader agreement fails. Oil prices rebounded on renewed supply disruption fears, lifting bond yields worldwide and reigniting inflation concern. Escalating global risks pressured luxury stocks: LVMH dropped 3%, L'Oréal 1.6%, Hermès 0.9%. Financials also slipped, with BNP Paribas down 0.5%. Meanwhile industrials traded mixed, Airbus fell 2.5%, Safran rose 0.9%. Elsewhere, TotalEnergies gained 2.7% on higher oil prices.

The CAC 40 Index dropped -43 points or 0.53 percent on Thursday to close at 8220 points. Losses were led by Publicis (-4.88%), Capgemini (-4.63%) and Dassault Systemes (-4.05%). Offsetting the fall, top gainers were TotalEnergies SE (2.21%), Air Liquide (2.04%) and STMicroelectronics (1.74%).

The CAC 40 dropped 0.7% to 8,200 on Thursday, reversing a sharp 4.5% rise in the previous session, tracking losses across European peers as sentiment turned cautious amid a fragile US–Iran ceasefire. Tensions remained elevated as the Strait of Hormuz stayed largely disrupted, while continued Israeli strikes on Lebanon prompted Iran to threaten walking away from the agreement. US President Donald Trump also warned of renewed escalation if a broader deal is not reached. Oil prices rebounded after the prior day’s sharp decline, as renewed concerns over potential energy supply disruptions through key shipping routes returned to the forefront. Meanwhile, French Finance Minister Roland Lescure said the economic impact remains limited for now, though the outlook depends on whether the conflict escalates or stabilizes. Luxury, aerospace, industrials, and banking stocks led the declines, down 1% to 3%. In contrast, energy firm TotalEnergies gained 1% as oil prices rose again.