The CAC 40 Index Closes 1.67% Lower

The CAC 40 Index decreased 135 points or 1.67 percent on Friday to close at 7947 points. The decline was led by Unibail Rodamco (-6.40%), ArcelorMittal (-5.02%) and STMicroelectronics (-4.58%).

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.

The CAC 40 fell 0.9% to 8,012 on Friday, reversing the previous session’s gains and heading for a weekly decline, as renewed inflation concerns weighed on sentiment amid stalled U.S.–Iran peace negotiations. During the second-day summit in Beijing, U.S. President Donald Trump said his patience with Iran was “running out.” He added that he and Chinese President Xi Jinping agreed that Tehran must not be allowed to develop nuclear weapons, and that the strategic Strait of Hormuz should be reopened. On the monetary policy front, ECB Governing Council member Martins Kazaks warned that the ECB may need to tighten policy if rising oil prices lift inflation expectations, highlighting ongoing sensitivity to energy shocks in import-dependent Europe. Among individual stocks, LVMH slipped 0.7% after selling Marc Jacobs to a WHP Global–G-III Apparel joint venture. Elsewhere, STMicroelectronics dropped 4.1% after a roughly €1 billion deal involving Chinese partner Dongfeng Motor Corporation.