The CAC 40 Index Opens 0.16% Lower

The CAC 40 fell 0.2% to 8,264 on Monday, extending losses from the previous week and hitting its lowest level since early July, as investors grew cautious over expectations for further interest rate hikes by major central banks. The European Central Bank is widely expected to raise borrowing costs later this week, with markets also pricing in another rate increase in December. Expectations for tighter monetary policy were reinforced by renewed inflation concerns after the US and Iran exchanged strikes on vessels over the weekend. Luxury stocks were among the biggest drags on the index, with both LVMH and Hermès falling 1% and Kering losing 1.8%. On the upside, TotalEnergies rose 1.7%, while STMicroelectronics and Legrand gained 2.3% and 1.2%, respectively.

The CAC 40 Index is dropping 13 points. Leading the losses are Pernod Ricard (-2.53%), Edenred (-2.28%) and Kering (-1.98%). Top gainers were STMicroelectronics (2.49%), TotalEnergies SE (1.77%) and Legrand (1.17%).

The CAC 40 inched 0.1% lower to close at 8,279 on Friday following the release of domestic and Eurozone economic data. Eurozone retail sales fell 0.6% in July, following a 0.2% increase in June and missing market expectations for a 0.3% rise. Luxury stocks closed mixed, with Hermes losing 1.6% and LVMH shedding 0.4%, while L’Oréal rose 1.4% and Kering edged 0.2% higher. France’s construction activity recorded its sharpest contraction since May 2020, while overall Eurozone construction activity contracted at a faster pace than in July. Despite this, Vinci gained 0.7%, while Eiffage edged 0.3% lower. TotalEnergies also weighed on the index, dropping 2.5% as oil prices pulled back. Dassault Systèmes tumbled 6.5%, tracking weakness in AI-exposed hyperscalers on Wall Street. Industrials were mostly higher. Legrand rose 3.3% after Deutsche Bank raised its price target to €160 from €150. STMicroelectronics gained 1.8%, tracking strength among US chipmakers. The index lost 1.3% on the week.