French Stocks Fall on Fresh US-Iran Tensions
2026-05-28 07:49
By
Czyrill Jean Coloma
1 min. read
The CAC 40 fell 0.5% to 8,168 on Thursday, reversing gains from the previous session as investors turned cautious on renewed US-Iran tensions despite ongoing peace talks.
The US military reportedly intercepted four Iranian drones and carried out strikes on a control center in the southern port city of Bandar Abbas to prevent the launch of a fifth drone, highlighting the fragility of ongoing diplomatic negotiations.
Domestically, French producer prices rose 2.1% year-on-year in April 2026, accelerating sharply from a flat reading in March and marking the highest reading since June 2023.
Investors are now looking ahead to Friday’s releases of France’s final Q1 GDP figures, inflation data, and payrolls report for further clues on the economic outlook.
Notable declines were seen in luxury heavyweight stocks such as LVMH (-1.4%) and Hermes (-1.7%), alongside other major decliners including Sanofi (-1.2%), Danone (-1.1%), and Pernod Ricard (-1%).