French Stocks Fall for 4th Straight Session
2026-05-12 07:42
By
Czyrill Jean Coloma
1 min. read
The CAC 40 fell 0.6% to 8,009 on Tuesday, marking its fourth consecutive session of losses as market sentiment remained subdued amid fading hopes for a diplomatic breakthrough in the US-Iran peace negotiations.
President Donald Trump said a potential ceasefire with Iran was “on life support” following Tehran’s rejection of a US-backed proposal aimed at ending the conflict.
The renewed geopolitical uncertainty pushed oil prices higher, reigniting concerns over inflation and economic growth.
As a result, investors assessed the outlook for monetary policy in Europe.
Traders are now fully pricing in two additional 25 bps rate hikes from the European Central Bank by September, with roughly a 75% probability of a third increase before year-end.
The majority of stocks traded lower, with financial stocks among the biggest decliners.
BNP Paribas fell 1.8%, while AXA lost 1.4%, Crédit Agricole declined 1.2%, and Société Générale dropped 2.9%.