The CAC 40 Index Closes 0.71% Lower

The CAC 40 Index fell 59 points or 0.71 percent on Tuesday to close at 8341 points. Leading the losses are STMicroelectronics (-9.11%), Stellantis NV (-6.43%) and Legrand (-4.15%). Top gainers were Eurofins Scientific SE (2.77%), Dassault Systemes (2.35%) and Airbus (1.97%).

The CAC 40 fell 0.7% to close at 8,341 on Tuesday, extending losses for a third straight session as investors reassessed the outlook for global monetary policy. Markets increasingly expect the US Federal Reserve to deliver a total of 50 basis points in rate hikes by year-end to contain inflationary pressures. In Europe, traders also continued to price in an additional 25 basis-point increase from the European Central Bank later this year, despite Christine Lagarde recently downplaying concerns over second-round inflation effects. Financial stocks traded lower, with Societe Generale down 1.5%. Luxury stocks were mixed as risk aversion increased, with L'Oréal down 0.3%, Hermès losing 1%, and Kering falling 0.9%, while LVMH rose 0.6%. STMicroelectronics plunged 8.1%, tracking Wall Street as technology stocks came under pressure amid concerns that AI-driven valuations have become overstretched. Industrials were mixed, with Schneider Electric down 4%, while Airbus gained 2.2%.

The CAC 40 fell 0.8% to 8,329 on Tuesday, extending losses for a third consecutive session as investors reassessed the outlook for global monetary policy. Markets increasingly expect the Federal Reserve to deliver a total of 50 bps of rate hikes by year-end to counter inflationary pressures fueled by rising energy prices amid persistent Middle East tensions. In Europe, traders also continued to price in an additional 25 bps rate increase from the ECB later this year, despite ECB President Christine Lagarde recently dismissing concerns over second-round inflation effects. Domestically, flash Composite PMI rose to 47.6 in June from 44.9 in May, surpassing market expectations of 46.0, driven by a return to growth in manufacturing activity (50.7 vs 49.7 in May) and a softer contraction in the services sector (47.4 vs 44.3). On the corporate front, STMicroelectronics plunged 5.3% as technology stocks came under pressure amid concerns that AI-driven valuations have become overstretched.