The CAC 40 Index Closes 0.39% Lower

The CAC 40 lost 0.4% to close at 8,229 following the collapse of US-Iran peace talks and US Navy preparations to blockade Iranian ports. Oil prices surged on renewed supply concerns, reigniting stagflation fears and raising bets of a hawkish response by the ECB. Luxury stocks declined on rising risk aversion, with L'Oreal down 0.6% and Kering down 1.6%, both set to report earnings later this week. LVMH, which edged down this session, reported a 6% year-on-year revenue decline in Q1 2026 after the market closed. In the industrial sector, Safran lost 1% and Danone fell 2.7%. Meanwhile, Airbus gained 0.6% and Thales advanced 2.5% as defence-related stocks were supported by escalating geopolitical tensions. Elsewhere, TotalEnergies rose 1.3% on higher oil prices.

The CAC 40 Index decreased -32 points or 0.39 percent on Monday to close at 8227 points. The decline was led by Danone (-2.69%), Stellantis NV (-2.47%) and Veolia (-1.68%). On the upside, the strongest performers were Dassault Systemes (4.31%), Thales (2.51%) and Capgemini (2.14%).

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%).