French Stocks Fall on Middle East Jitters

2026-07-15 08:06 By Czyrill Jean Coloma 1 min. read

The CAC 40 fell 0.3% to 8,340 on Wednesday, following a subdued performance in the previous session, as investors continued to assess the impact of escalating tensions in the Middle East.

President Trump’s withdrawal of a proposed 20% tax on goods passing through the Strait of Hormuz offered little market relief, as Tehran’s commitment to keeping the waterway closed fueled supply disruption fears.

The latest development sent oil prices higher, reviving concerns over prolonged inflationary pressures.

Markets have priced in two rate hikes in 2026, with a September hike now considered certain.

Industrial and financial stocks declined, including Airbus (-1.3%), Safran (-1.2%), Air Liquide (-1.6%), BNP Paribas (-1.1%) and AXA (-1.3%).

In contrast, luxury stocks outperformed, led by LVMH (2.6%), Hermès (2.2%) and Kering (3%), on optimism that the global personal luxury goods market is recovering after Bain & Company noted stronger-than-expected Q2 demand, particularly in the US.



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French Stocks Fall on Middle East Jitters
The CAC 40 fell 0.3% to 8,340 on Wednesday, following a subdued performance in the previous session, as investors continued to assess the impact of escalating tensions in the Middle East. President Trump’s withdrawal of a proposed 20% tax on goods passing through the Strait of Hormuz offered little market relief, as Tehran’s commitment to keeping the waterway closed fueled supply disruption fears. The latest development sent oil prices higher, reviving concerns over prolonged inflationary pressures. Markets have priced in two rate hikes in 2026, with a September hike now considered certain. Industrial and financial stocks declined, including Airbus (-1.3%), Safran (-1.2%), Air Liquide (-1.6%), BNP Paribas (-1.1%) and AXA (-1.3%). In contrast, luxury stocks outperformed, led by LVMH (2.6%), Hermès (2.2%) and Kering (3%), on optimism that the global personal luxury goods market is recovering after Bain & Company noted stronger-than-expected Q2 demand, particularly in the US.
2026-07-15
The CAC 40 Index Opens 0.54% Lower
The CAC 40 Index is losing 45 points. Losses were led by STMicroelectronics (-4.04%), Carrefour (-1.95%) and Air Liquide (-1.50%). Offsetting the fall, top gainers were Edenred (2.89%), Kering (2.46%) and LVMH (2.12%).
2026-07-15
CAC 40 Steady on Finance and Energy Gains
The CAC 40 inched up to close at 8,367 on Tuesday after softer-than-expected US inflation data. US consumer prices declined in June for the first time in six years, while core inflation was little changed, easing pressure on the Federal Reserve to raise interest rates. Financials traded higher, with BNP Paribas up 1.4% and Credit Agricole adding 1.6%. Meanwhile, TotalEnergies advanced 1.1% as oil prices rose amid ongoing tensions in the Middle East. Other notable gainers included Schneider Electric (+1.7%) and Engie (+0.9%). In contrast, luxury stocks tumbled on rising geopolitical risks. LVMH lost 1.7%, L'Oreal shed 0.8%, and Kering retreated 2.4%. Safran (-0.7%), Sanofi (-2.1%), and EssilorLuxottica (-2.5%) also posted losses.
2026-07-14