The CAC 40 Index Closes 0.95% Lower

The CAC 40 Index decreased 76 points or 0.95 percent on Tuesday to close at 7980 points. The decline was led by STMicroelectronics (-5.44%), Societe Generale (-4.33%) and Schneider Electric (-3.86%). On the upside, the strongest performers were TotalEnergies SE (1.67%), Danone (1.55%) and L'Oréal (1.41%).

The CAC 40 fell 0.9% to close at 7,980 on Tuesday, marking a fourth consecutive session of losses as fading hopes for a US-Iran peace agreement continued to weigh on sentiment. US President Donald Trump said a potential ceasefire with Iran was “on life support” after Tehran rejected a US-backed proposal aimed at ending the conflict. The renewed geopolitical uncertainty pushed oil prices higher, reviving concerns over inflation and slowing economic growth. Investors also reassessed the outlook for monetary policy in Europe, with markets now pricing in two additional 25 basis-point rate hikes from the ECB by September. Financial stocks led the losses, with BNP Paribas down 2.7% and Société Générale falling 3.8%. Industrials also traded lower, with Airbus down 1.7% and Safran losing 1.3%. On the upside, TotalEnergies gained 1.8% as higher crude prices supported energy stocks, while most luxury shares advanced, including L’Oréal (+1.5%).

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%.