CAC 40 Slips on Earnings and US-Iran Tensions

2026-07-16 15:56 By Isabela Couto 1 min. read

The CAC 40 inched lower to close at 8,378 on Thursday, reversing gains from the previous session and tracking broader European markets lower as investors assessed corporate earnings and geopolitical developments.

TotalEnergies fell 1.5% after warning that LNG earnings would decline sharply due to weaker European demand.

STMicroelectronics tumbled 4.9% amid weakness across the technology sector on concerns about stretched AI-driven valuations.

Meanwhile, sentiment remained fragile as the US and Iran continued to exchange strikes.

The latest escalation revived concerns over inflation and interest rates, with markets fully pricing in an ECB rate hike in September and another increase expected by spring 2027.

Industrial stocks traded lower, with Safran down 0.5% and Schneider Electric losing 2.1%.

In contrast, luxury stocks advanced, with LVMH up 1.5% and Hermès adding 1.3%, extending gains after Richemont reported better-than-expected sales.



News Stream
The CAC 40 Index Closes 0.05% Lower
The CAC 40 Index dropped 5 points or 0.05 percent on Thursday to close at 8378 points. Losses were led by STMicroelectronics (-8.90%), TP (-4.06%) and Schneider Electric (-2.20%). Offsetting the fall, top gainers were Pernod Ricard (2.50%), Publicis (2.48%) and Michelin (1.68%).
2026-07-16
CAC 40 Slips on Earnings and US-Iran Tensions
The CAC 40 inched lower to close at 8,378 on Thursday, reversing gains from the previous session and tracking broader European markets lower as investors assessed corporate earnings and geopolitical developments. TotalEnergies fell 1.5% after warning that LNG earnings would decline sharply due to weaker European demand. STMicroelectronics tumbled 4.9% amid weakness across the technology sector on concerns about stretched AI-driven valuations. Meanwhile, sentiment remained fragile as the US and Iran continued to exchange strikes. The latest escalation revived concerns over inflation and interest rates, with markets fully pricing in an ECB rate hike in September and another increase expected by spring 2027. Industrial stocks traded lower, with Safran down 0.5% and Schneider Electric losing 2.1%. In contrast, luxury stocks advanced, with LVMH up 1.5% and Hermès adding 1.3%, extending gains after Richemont reported better-than-expected sales.
2026-07-16
French Stocks Track European Peers Lower
The CAC 40 fell 0.6% to 8,329 on Thursday, reversing gains from the previous session and mirroring European peers lower as investors assessed corporate earnings and developments. TotalEnergies dropped 1.6% as the company warned that LNG earnings would decline sharply due to softer European demand. However, the company expects higher Q2 profit, supported by a surge in energy prices linked to the Middle East conflict. STMicroelectronics also slipped 1.2%, tracking weakness across the technology sector as investors continued to question whether earnings growth can justify stretched AI-driven valuations. Meanwhile, sentiment remained fragile as the US continued strikes on Iran for a fifth consecutive day, with Iran retaliating by targeting US bases in Kuwait and Jordan. The latest escalation revived concerns over inflation and interest rates, with markets fully pricing in an ECB rate hike in September and another increase expected by spring 2027.
2026-07-16