CAC 40 Falls on Middle East Tensions Escalation

2026-06-10 16:04 By Isabela Couto 1 min. read

The CAC 40 fell 0.5% to close at 8,162 on Wednesday, weighed down by escalating tensions in the Middle East.

Iran launched attacks against several Gulf nations after US retaliatory strikes following the downing of an American helicopter.

Oil prices rose, renewing inflation fears and pushing bond yields higher.

Financials traded mixed, with BNP Paribas down 1.5% and Societe Generale losing 2.3%, while AXA gained 0.9%.

Luxury shares weighed on the index, with LVMH falling 0.9% and Hermes shedding 2.8%.

Safran lost 1.4%.

STMicroelectronics erased earlier gains despite a Bank of America upgrade to "buy", as enthusiasm around AI faded.

Sanofi fell 1.3% after halting a late-stage trial for an experimental autoimmune treatment.

Investors also awaited Thursday's ECB meeting, with markets expecting a rate hike.



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2026-06-10
CAC 40 Falls on Middle East Tensions Escalation
The CAC 40 fell 0.5% to close at 8,162 on Wednesday, weighed down by escalating tensions in the Middle East. Iran launched attacks against several Gulf nations after US retaliatory strikes following the downing of an American helicopter. Oil prices rose, renewing inflation fears and pushing bond yields higher. Financials traded mixed, with BNP Paribas down 1.5% and Societe Generale losing 2.3%, while AXA gained 0.9%. Luxury shares weighed on the index, with LVMH falling 0.9% and Hermes shedding 2.8%. Safran lost 1.4%. STMicroelectronics erased earlier gains despite a Bank of America upgrade to "buy", as enthusiasm around AI faded. Sanofi fell 1.3% after halting a late-stage trial for an experimental autoimmune treatment. Investors also awaited Thursday's ECB meeting, with markets expecting a rate hike.
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French Stocks Extend Modest Gains
The CAC 40 rose 0.3% to 8,231 on Wednesday, extending modest gains from the previous session as investors remained cautiously optimistic about Middle East peace negotiations. Sentiment held up even as Iran launched attacks against several Gulf nations, after US “self-defense” strikes were carried out in retaliation for the downing of an American helicopter. In Europe, the European Central Bank is widely expected to raise rates on Thursday as policymakers grapple with a spike in energy prices linked to ongoing Middle East tensions. Investors are also focused on guidance on the future policy path as inflation pressures build. On the corporate front, STMicroelectronics climbed 2% after BofA Global Research raised its rating to “buy” from “neutral.” In contrast, Sanofi edged down 0.2% after announcing the discontinuation of a late-stage trial for an experimental treatment targeting a rare autoimmune disorder.
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