The CAC 40 Index Opens 0.64% Higher

The CAC 40 Index decreased 85 points or 1.03 percent on Tuesday to close at 8173 points. The decline was led by Carrefour (-6.05%), Credit Agricole (-6.05%) and TP (-4.96%).

The CAC 40 slipped 1% to close at 8,173 on Tuesday as renewed military action weakened hopes for a US-Iran peace agreement. The US and Israel carried out targeted strikes in Iran, renewing uncertainty over when the Strait of Hormuz could reopen and reviving concerns about prolonged inflation driven by elevated energy prices. On the monetary policy front, Isabel Schnabel said the ECB should proceed with an interest rate hike in June even if tensions in the Middle East ease. The central bank is widely expected to raise borrowing costs by 25 basis points next month. Luxury stocks led losses, with LVMH down 1.8%, Hermès shedding 3.3%, and Kering falling 3%. Industrials also traded lower, with Safran down 2.1% and Airbus losing 1.1%. On the upside, STMicroelectronics gained 3.1% as chipmakers continued to benefit from the AI boom in the US, while TotalEnergies rose 0.7% on renewed supply concerns.

The CAC 40 slipped 0.5% to 8,218 on Tuesday, snapping a two-session winning streak as renewed military action dampened hopes for a US-Iran peace agreement. The US and Israel carried out targeted strikes in southern Iran, hitting vessels allegedly attempting to lay naval mines and missile launch sites, which Washington described as defensive measures. On the monetary policy front, European Central Bank Executive Board member Isabel Schnabel said the central bank should proceed with an interest rate hike in June even if tensions in the Middle East ease. The ECB is expected to raise borrowing costs by 25 basis points on June 11 as soaring energy prices fuel inflationary pressures across the euro area. Luxury heavyweights paced the decline, with LVMH falling 0.7%, Hermès losing 1.2%, and Kering sliding 1.6%. Other notable decliners included Safran (-1.5%), Crédit Agricole (-5.6%), and Publicis Groupe (-0.6%).