French Stocks Settle at Over 1-Week Low

The CAC 40 Index fell 95 points or 1.14 percent on Tuesday to close at 8236 points. Leading the losses are Safran (-6.24%), Thales (-5.91%) and Airbus (-3.32%).

The CAC 40 erased early meager gains to close about 1.1% down at 8,236 on Tuesday, the lowest in over a week, amid uncertainty over US–Iran talks ahead of a ceasefire deadline. President Trump told CNBC he expects a “fantastic deal” with Iran, saying the country has “no other choice,” while adding he will not extend the two-week truce following more than a month of conflict. Meanwhile, the traffic in the Strait of Hormuz remains largely halted.. Among key movers, Safran slipped nearly 7% and led losses following a downgrade from Jefferies to "hold" from "buy". Thales followed closely, down almost 6%, despite stronger-than-expected sales, weighed by weakness in its cybersecurity segment and a cautious short-term outlook. On the flip side, STMicroelectronics gained 0.9%, while TotalEnergies rose 0.8% on higher oil prices.

The CAC 40 traded flat around 8,331 on Tuesday, following losses in the previous session, as investors awaited progress in ceasefire talks between the US and Iran. Both sides are expected to send delegations to Islamabad for a second round of negotiations before the current truce expires later this week. However, President Trump said he is unlikely to extend the two-week ceasefire, adding that the Strait of Hormuz will remain blocked until a deal is finalized. Domestically, Finance Minister Roland Lescure said that France could face costs of up to €6 billion ($7.1 billion) from the Middle East war, while warning that the crisis remains highly uncertain in its trajectory, economic impact, and implications for public finances. Modest gains were recorded for TotalEnergies (0.1%), Schneider Electric (0.7%), and Air Liquide (0.3%). In contrast, Thales slipped 0.9% despite reporting stronger-than-expected sales and a 75% surge in defense orders, supported by sustained military spending.