French Stocks Extend Losses, Still Set for Weekly Gain

The CAC 40 fell 1.1% to close at 8,113 on Friday, extending the previous session’s losses as renewed tensions between the US and Iran rattled investor sentiment. Three US Navy destroyers reportedly intercepted Iranian attacks in the Strait of Hormuz and carried out retaliatory strikes, raising fears of a broader regional conflict and pushing oil prices higher. European markets remained vulnerable to developments in the Middle East due to the region’s reliance on imported energy and concerns that higher oil prices could fuel inflation and weigh on economic growth. US President Trump warned that the EU could face significantly higher tariffs if trade agreements are not reached. Most sectors traded lower, with financial stocks BNP Paribas (-1.8%) and AXA (-1.3%) among the main decliners. Luxury names LVMH (-1.2%) and Hermès (-2.4%) also fell amid weaker risk appetite, while industrials Airbus (-1.9%) and Safran (-2.9%) declined. In contrast, TotalEnergies gained 0.7%.

The CAC 40 fell 1% to 8,123 on Friday, extending the previous session’s losses as renewed tensions between the US and Iran rattled investor sentiment. Three US Navy destroyers reportedly intercepted Iranian attacks in the Strait of Hormuz and carried out retaliatory strikes, raising fears of a broader regional conflict and driving oil prices higher. European markets remained vulnerable to developments in the Middle East amid the region’s reliance on imported energy and concerns that rising oil prices could stoke inflation and weigh on economic growth. Sentiment was further pressured after Trump warned that the EU could face significantly higher tariffs if trade agreement were not met by July 4. Most sectors traded lower, with financial stocks BNP Paribas (-1.8%), AXA (-1.5%), Crédit Agricole (-1.4%), and Société Générale (-1.7%) among the main decliners. Despite the recent pullback, the CAC 40 remains on track for modest gains.

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%).