CAC 40 Falls as Oil Rise Revives Inflation Concerns
2026-05-15 16:06
By
Isabela Couto
1 min. read
The CAC 40 fell 1.6% to close at 7,952 on Friday, reversing the previous session’s gains and posting a weekly decline as renewed inflation concerns weighed on sentiment amid stalled US-Iran peace negotiations.
Oil prices rose due to the lack of progress toward ending ship attacks and seizures around the Strait of Hormuz, reinforcing stagflation fears.
ECB Governing Council member Martins Kazaks warned that the ECB may need to tighten policy if higher oil prices lift inflation expectations, underscoring Europe’s sensitivity to energy shocks.
Financial stocks traded lower, with BNP Paribas down 3%, while luxury shares also weakened amid higher risk aversion, led by Kering (-3.1%) and LVMH (-1.1%) after the group sold Marc Jacobs to a WHP Global-G-III Apparel joint venture.
Industrials also posted losses, with Airbus down 2.9% and Safran shedding 4.2%, while STMicroelectronics fell 4.2% following a deal involving Chinese partner Dongfeng Motor.