CAC 40 Edges Down Amid Middle East Tensions

The CAC 40 Index gained 2 points or 0.02 percent on Monday to close at 8220 points. Gains were led by STMicroelectronics (3.77%), Orange (1.98%) and Hermes International (1.30%). Biggest losers were Saint-Gobain (-3.82%), Bouygues (-1.91%) and Sanofi (-1.33%).

The CAC 40 shed 0.2% to close at 8,199 on Monday as investors reacted to weekend strikes between Iran and Israel and rising bond yields. Financial and industrial stocks led losses as renewed tensions in the Middle East fueled caution among investors. BNP Paribas and AXA each fell 0.5%, while Société Générale lost 0.6%. In the industrial sector, Airbus declined 1.1% and Safran shed 1.3%, while Sanofi fell 1.6%. Air Liquide slumped 9.8%. In contrast, luxury stocks remained resilient, with LVMH up 0.7%, L'Oréal advancing 0.8%, and Hermès gaining 1.5%. STMicroelectronics rose 4% as optimism surrounding artificial intelligence continued to support technology shares.

The CAC 40 slipped 0.7% to 8,162 on Monday, reversing gains from the previous session as renewed geopolitical tensions in the Middle East dampened risk sentiment. Israel carried out strikes on military targets in Iran following attacks from Tehran, even as the US and Iran continued negotiations aimed at ending their conflict. Israel has maintained that any agreement should not address its separate conflict with Hezbollah. Most sectors traded lower, led by losses in heavyweight luxury stocks. LVMH fell 1.4%, Hermès declined 1.6%, and Kering dropped 2.1%. Defense and industrial names also came under pressure, with Airbus down 2.4%, Safran losing 2.8%, and Air Liquide sliding 8.5%. Meanwhile, energy stocks outperformed as surging oil prices boosted the sector, with TotalEnergies gaining 1.4%.