The CAC 40 Index Opens 0.34% Lower

The CAC 40 fell 0.5% to 8,166 on Wednesday, tracking broader European markets lower as investors weighed uncertainty surrounding the US-Iran ceasefire and fresh tariff threats from the US. Renewed tensions resurfaced in the Middle East after Iran launched ballistic missiles toward neighboring countries, prompting retaliatory US strikes on Qeshm Island. Trade concerns also emerged after the US Trade Representative proposed tariffs of up to 12.5% on 60 trading partners, including the European Union, over alleged failures to prohibit imports linked to forced labor. Domestically, final estimates showed the Composite PMI was revised up to 44.9 in May 2026, though it stillmarked the sharpest downturn since January 2024. The Services PMI was also revised higher to 44.3 but remained at its steepest contraction since November 2020. Industrial and aerospace shares led the decline, with Schneider Electric (-0.9%), Airbus (-1.8%), and Safran (-1.7%) among the biggest drags on the index.

The CAC 40 Index is losing 28 points. Losses were led by BNP Paribas (-1.81%), Airbus (-1.80%) and Renault (-1.75%). Offsetting the fall, top gainers were Veolia (1.88%), Air Liquide (1.55%) and Danone (1.37%).

The CAC 40 rose 0.8% to close at 8,209 on Tuesday, as easing bond yields supported risk appetite. Financial stocks rose, with BNP Paribas up 2%. Industrial and technology shares also advanced, with Schneider Electric gaining 4% and STMicroelectronics surging 15.1% after raising revenue targets for its data-center business, highlighting strong AI-driven demand. Luxury stocks moved higher as signs emerged that Chinese demand is stabilizing and LVMH intensified its focus on the US market. LVMH rose 1.1%, while Kering gained 2.7%. Meanwhile, investors monitored developments in the Middle East after Iran suspended indirect talks with Washington over Israel's military operations in Lebanon, although President Trump maintained that negotiations were still ongoing. On the data front, Eurozone's preliminary inflation data showed the headline rate rose to 3.2% as expected, while the core inflation rose slightly more than expected to 2.5%, consolidating bets of a rate hike by the ECB next week.