The CAC 40 Index Closes 0.73% Lower

The CAC 40 shed 0.4% to close at 8,147 on Monday as reports that Iran will halt communication with the US cast doubt on the prospects for renewing the ceasefire. Oil prices rebounded, reviving stagflation concerns and pushing bond yields higher. Investors also assessed the outlook for the French economy after the Bank of France signaled it would lower its growth forecasts later this month following a weak start to the year and persistent geopolitical uncertainties linked to the conflict in the Middle East. The central bank currently expects the economy to expand by 0.9% this year, while the IMF recently cut its forecast to 0.7% from 0.9%. Industrial stocks led losses, with Airbus down 3.6%, Safran losing 2.8%, and Thales shedding 4%. Luxury shares also traded lower amid higher risk aversion, with LVMH down 0.7% and L'Oréal losing 0.8%. On the upside, TotalEnergies gained 1.6% as oil prices advanced.

The CAC 40 Index dropped 60 points or 0.73 percent on Monday to close at 8124 points. Losses were led by Accor (-3.87%), Renault (-3.73%) and Thales (-3.67%). Offsetting the fall, top gainers were Dassault Systemes (7.74%), Capgemini (7.01%) and Publicis (2.25%).

The CAC 40 was little changed at 8,177 on Monday as investors remained uncertain about a potential agreement between the United States and Iran. The two sides continued to disagree over key issues, including the fate of Iran's highly enriched uranium stockpile and the reopening of the Strait of Hormuz. Investors also assessed the outlook for the French economy after the Bank of France indicated it would lower its growth forecasts later this month following a weak start to the year and persistent geopolitical uncertainties linked to the conflict in the Middle East. The central bank had already cut its growth projection in March and currently expects the economy to expand by 0.9% this year. The IMF also downgraded its forecast for France's economic growth to 0.7% from 0.9%. Top performers included TotalEnergies (1.3%), Schneider Electric (2.4%), and STMicroelectronics (1.9%). In contrast, notable laggards included Safran (-1.3%), Sanofi (-1.1%), and Vinci (-1.1%).