CAC 40 Falls Following ECB Rate Hike
2026-09-10 16:30
By
Isabela Couto
1 min. read
The CAC 40 fell 0.5% to close at 8,117 on Thursday following the ECB’s decision to raise its key interest rate to 2.5%.
The 25-basis-point hike was anticipated after euro area inflation jumped to 3.3% in August, the highest level in three years and above the ECB’s 2% target.
“The conflict in the Middle East continues to generate inflation pressures, and inflation is set to remain well above target for an extended period,” the ECB said in a statement.
Reports indicated that ECB officials expect to raise interest rates further, with another increase possible as soon as next month.
Meanwhile, oil prices jumped as fears of prolonged energy supply disruptions intensified following the biggest wave of attacks on shipping in the Strait of Hormuz by the US and Iran on Wednesday.
Luxury stocks posted losses amid elevated risk aversion, with L’Oréal down 1.6% and LVMH shedding 1.2%.
Industrial stocks also closed lower, with Air Liquide and Sanofi down 0.9% and EssilorLuxottica losing 2.1%.