The CAC 40 Index Closes 0.55% Lower

The CAC 40 Index fell 47 points or 0.55 percent on Friday to close at 8421 points. Leading the losses are L'Oréal (-2.51%), Essilor (-2.31%) and Hermes International (-2.24%). Top gainers were Renault (3.20%), TotalEnergies SE (1.01%) and Dassault Systemes (0.88%).

The CAC 40 fell 0.5% to close at 8,421 on Friday after scheduled US-Iran negotiations in Switzerland were called off, denting diplomatic hopes. The talks, aimed at addressing Iran’s nuclear program following a recently signed memorandum of understanding, were delayed. Pressure from the Federal Reserve’s hawkish shift earlier in the week also continued to weigh on sentiment. Luxury stocks led losses as risk aversion increased, with LVMH down 1.2%, L'Oréal falling 1.9%, and Hermès shedding 2.3%. Industrial stocks also weakened, with Airbus down 1.3% and Safran losing 1.2%. In contrast, TotalEnergies rose 1% amid uncertainty over Middle East peace prospects and oil supply normalization. Meanwhile, Pierre Wunsch said the European Central Bank may raise interest rates again as soon as next month if inflation shows broader signs of spreading beyond energy.

The CAC 40 rose 0.2% to 8,481 on Friday and was on track for a fifth consecutive week of gains, despite a setback in diplomatic efforts after scheduled US-Iran negotiations in Switzerland were called off. The cancellation came amid the most intense exchange of hostilities between Israel and Hezbollah since the ceasefire was reached, clouding prospects for a broader peace accord and stoking concerns over the reopening of the Strait of Hormuz. Investors also digested a busy week of central bank decisions, including Federal Reserve Chair Kevin Warsh's first policy meeting. On the corporate front, TotalEnergies advanced 0.8% after stating that it could sell its 20% stake in Yamal LNG if it is prohibited from marketing Russian LNG outside the EU. Other notable gainers included LVMH (1.9%), Safran (1.1%), and Sanofi (1.5%). In contrast, decliners included L'Oréal (-0.9%), EssilorLuxottica (-1.1%), and Engie (-1.0%).