The CAC 40 Index Closes 1.72% Lower

The CAC 40 Index dropped 50 points or 0.60 percent on Monday to close at 8351 points. Losses were led by Airbus (-2.86%), Safran (-2.30%) and STMicroelectronics (-2.06%). Offsetting the fall, top gainers were Stellantis NV (1.83%), Pernod Ricard (1.80%) and TotalEnergies SE (1.40%).

The CAC 40 fell 0.8% to close at 8,334 on Monday amid renewed inflationary pressures stemming from the US-Iran war. Oil prices rebounded as the US and Iran exchanged strikes for the first time in roughly a month, while fresh concerns over shipping through the Strait of Hormuz added to supply risks. Higher crude prices weighed on the index amid concerns over energy-driven inflation. Luxury stocks declined as risk aversion increased, with LVMH losing 1.1%, L’Oreal shedding 1%, and Hermes retreating 1.1%. Financials were mixed, with AXA down 1.2%. Industrials underperformed, led by Airbus (-2.9%) and Safran (-2.1%). Fitch Ratings affirmed France’s rating at ‘A+’ with a Stable Outlook. However, high and rising public debt, a challenging political and social environment, and weak potential growth are seen as constraints. Tech stocks tracked losses in the US, with Schneider Electric down 2.4% and STMicroelectronics losing 0.8%. In contrast, TotalEnergies gained 1.1% on higher oil prices.

The CAC 40 hovered near the flatline around 8,409 on Monday, following losses in the previous week as investors remained focused on escalating tensions in the Middle East. US forces struck two Iranian missile launchers on Larak Island in the Strait of Hormuz, while Tehran retaliated with an attack on US forces in Jordan. President Trump also said Iran’s main oil terminal on Kharg Island was being “blown to smithereens.” Domestically, Fitch Ratings affirmed France’s Long-Term Issuer Default Ratings at ‘A+’ with a Stable Outlook, citing the country’s large and diversified high-income economy, sound banking sector and broad investor base. The rating is constrained by high and rising public debt, a challenging political and social environment that complicates fiscal consolidation, and weak potential growth. Financial stocks were among the top gainers, including BNP Paribas (0.8%), Crédit Agricole (0.7%) and Société Générale (1.5%). For the month, the CAC 40 is on track to decline.