The CAC 40 Index Opens 0.91% Lower

The CAC 40 fell 1% to 8,181 on Monday, trimming gains from the previous week and tracking its European peers as market optimism waned following the collapse of peace talks between the United States and Iran. Market anxiety deepened after U.S. President Donald Trump signaled preparations for a blockade of the Strait of Hormuz, a critical artery for global oil flows, raising fears of significant disruptions to Iranian exports and broader energy markets. On the monetary policy front, investors are recalibrating expectations, with attention turning to a more hawkish stance from the European Central Bank, as interest rate futures now indicate nearly three 25 bps hikes by year-end. Heavyweight luxury names led the decline, with LVMH falling 1.5%, Hermès shedding 1.6%, and Kering dropping 2.4%, with all three set to report earnings later this week. Financial stocks also weakened, including BNP Paribas (-1.4%), Crédit Agricole (-1.3%), and Société Générale (-1.9%).

The CAC 40 Index is losing -75 points. Losses were led by Kering (-3.06%), ArcelorMittal (-2.54%) and Safran (-2.14%). Offsetting the fall, top gainers were Carrefour (0.89%), TotalEnergies SE (0.87%) and Dassault Systemes (0.62%).

The CAC 40 edged up 0.2% to close at 8,260 on Friday as investors maintained cautious optimism ahead of US-Iran diplomatic talks scheduled to begin Saturday. Israeli Prime Minister Benjamin Netanyahu signaled readiness for talks with Lebanon. However, uncertainty persisted amid ongoing Israeli strikes in Lebanon and continued shipping disruptions in the Strait of Hormuz, both of which risk complicating diplomatic efforts and weighing on regional stability. The luxury sector traded mixed, with L'Oreal down 0.6% while Hermes advanced 0.3%. In the financial sector, BNP gained 1% while AXA lost 0.8%. Most industrial stocks posted losses, with Airbus down 0.8%, Safran down 0.8%, and Thales down 3.4%.