French Stocks Hit Near 7-Week Low
2026-05-18 07:46
By
Czyrill Jean Coloma
1 min. read
The CAC 40 fell 1% to 7,877 on Monday, extending losses from the previous week and hitting its lowest level since early April, as stalled US-Iran peace negotiations intensified inflation concerns.
With the Middle East conflict entering its third month, markets remained unsettled by the absence of any breakthrough between the US and Iran, while the Strait of Hormuz remained closed.
The prolonged disruption has driven oil and gas prices sharply higher, fueling fears of persistently elevated inflation across Europe, where economies remain heavily dependent on energy imports.
On the corporate front, luxury stocks, which have significant exposure to Chinese demand, were among the session’s biggest drags after China’s retail sales growth slowed to its weakest pace since December 2022, raising concerns over consumer spending.
LVMH fell 1.8%, while Hermès lost 1.4% and Kering declined 1.6%.
Other notable laggards included Schneider Electric (-1.1%), BNP Paribas (-3%), and Air Liquide (-2.6%).