CAC 40 Falls on Weak Earnings

The CAC 40 Index dropped 95 points or 1.15 percent on Thursday to close at 8204 points. Losses were led by Bouygues (-3.66%), Pernod Ricard (-3.03%) and Airbus (-2.68%).

The CAC 40 fell 1.1% to close at 8,210 on Thursday, as investors digested another round of corporate earnings. Engie lost 2.3% after reporting lower Q1 earnings, while Bouygues dropped 4.2% despite narrowing its net loss and posting higher operating profit. Legrand fell 1.9% even after reporting stronger Q1 revenue and profit. TotalEnergies shed 1.9% as oil prices slumped on reports that the US and Iran are close to finalizing a memorandum aimed at easing tensions and paving the way for reopening the Strait of Hormuz. Industrials also traded lower, with Airbus down 2.7%. In contrast, luxury stocks were mixed amid lower risk aversion, with LVMH (+0.9%) and Hermès (+1.8%) higher, while L’Oréal fell 1.7%.

The CAC 40 rose 0.7% to 8,354 on Thursday, extending gains for a third straight session and reaching its highest level in over two weeks, as market sentiment remained positive amid growing optimism over a diplomatic breakthrough between the US and Iran. Reports indicate the two sides are close to finalising a one-page memorandum aimed at de-escalating weeks of heightened tensions, which is expected to lay the groundwork for reopening the Strait of Hormuz, easing pressure on oil flows and improving the global growth outlook. Meanwhile, corporate earnings remained in focus. Legrand climbed 3.4% after reporting higher Q1 revenue and profit. Elsewhere, luxury heavyweights also performed well, particularly LVMH (1.8%), Hermès (2.2%) and Kering (1.3%). On the downside, Engie slipped 2.1% after reporting a decline in Q1 earnings, and Bouygues fell 2.2% even as it narrowed its net loss and posted higher operating profit.