The CAC 40 Index Opens 0.44% Lower

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%).

The CAC 40 Index is losing 37 points. Losses were led by TP (-4.49%), Bureau Veritas (-3.51%) and Hermes International (-1.70%). Offsetting the fall, top gainers were AXA (0.89%), Credit Agricole (0.77%) and STMicroelectronics (0.55%).

The CAC 40 rose 1.8% to close at 8,258 on Monday, reaching its highest level in more than two weeks as investors welcomed signs of a potential diplomatic breakthrough in the Middle East that could end the three-month conflict and reopen the Strait of Hormuz. The prospect of easing tensions triggered a sharp decline in oil prices and reduced concerns over energy-driven inflation. Luxury stocks led gains, with LVMH rising 1.3%, L'Oréal adding 1.9%, Hermès advancing 2.7%, and Kering climbing 2.3%. Financial shares also posted strong gains, including BNP Paribas (+3.1%), Crédit Agricole (+1.5%), and Société Générale (+4.8%). In contrast, TotalEnergies fell 1.5% as lower crude prices weighed on energy producers.