CAC 40 Slips Amid ECB Forum

The CAC 40 fell 0.8% to close at 8,337 on Wednesday as investors paused after strong gains over the previous three-month period and monitored developments at the ECB Forum. Governing Council member Martinš Kazaks signaled there was no urgency for the ECB to raise interest rates in July, noting that easing oil prices linked to peace efforts in the Middle East had helped reduce inflation pressures. Meanwhile, the US and Iran held indirect technical talks in Doha aimed at securing shipping flows through the Strait of Hormuz and reaching a lasting ceasefire. Luxury stocks traded lower, with L'Oréal down 0.9%. Schneider Electric fell 3.1% after agreeing to acquire Cognite. TotalEnergies lost 3.1% as oil prices remained near pre-conflict lows. Air Liquide rose 1.7% after announcing a $170 million investment in the US to supply ultra-pure gases to SK Hynix. Airbus added 1.9% after Scandinavian Airlines placed an order for up to 40 widebody aircraft.

The CAC 40 Index decreased 67 points or 0.79 percent on Wednesday to close at 8337 points. The decline was led by Orange (-4.39%), STMicroelectronics (-4.37%) and ENGIE (-3.77%). On the upside, the strongest performers were TP (8.48%), Renault (5.26%) and Essilor (4.88%).

The CAC 40 slipped 0.6% to 8,358 on Wednesday, as investors took a breather following the market’s strong performance over the past three months. Investors remained focused on developments in US-Iran peace talks after Tehran said it would not hold talks with US officials, while also awaiting remarks from policymakers at the ECB Forum later in the day. Meanwhile, ECB Governing Council member Martins Kazaks signaled there was no urgency to raise interest rates in July, noting that easing oil prices driven by peace efforts in the Middle East had helped reduce inflationary pressures. On the corporate front, Schneider Electric fell 2.6% after agreeing to acquire Cognite Holding. In contrast, Air Liquide rose nearly 2% to a record high after announcing a $170 million investment in the US to supply ultra-pure gases to SK Hynix. Airbus also gained 1.7%, reaching a more than four-month high after SAS ordered up to 40 widebody aircraft in a deal worth over $10 billion at list prices.