The CAC 40 Index Closes 1.62% Lower

The CAC 40 fell 1.5% to close at 8,065 on Friday, retreating after two consecutive sessions of gains as oil prices pared losses. The oil rally resumed after satellite imagery and industry sources indicated that three pumping stations serving Saudi Arabia’s vital East-West Pipeline were damaged in last week’s attack, one more than previously assessed, while the repair timeline remains uncertain. Luxury stocks fell amid higher risk aversion, with Hermes losing 3.2%. French bond yields moved higher amid concerns over energy-driven inflationary pressures. Financials also declined, with BNP Paribas down 2.9%. Meanwhile, the Fed and the BoJ raised rates earlier this week, while the BoE left interest rates unchanged. Still, traders pared back bets on further ECB tightening despite the Fed’s more hawkish stance, as concerns that persistently high energy prices could weigh on economic growth and eventually temper inflationary pressures. The CAC 40 shed 1.4% on the week.

The CAC 40 Index fell 133 points or 1.62 percent on Friday to close at 8054 points. Leading the losses are Stellantis NV (-6.22%), Renault (-5.53%) and Orange (-5.47%).

The CAC 40 fell 0.6% on Friday, retreating after two consecutive sessions of gains and heading for its sixth straight weekly decline as investors weighed the latest decisions from major central banks. Notably, the Federal Reserve and the Bank of Japan raised rates earlier this week, while the Bank of England left interest rates unchanged. Meanwhile, traders pared back bets on further ECB tightening despite the Federal Reserve’s more hawkish stance, citing concerns that persistently high energy prices could weigh on economic growth and eventually temper inflationary pressures. Domestically, Prime Minister Sébastien Lecornu is working to hammer out a deficit-reduction budget for 2027 as growing bond-market pressure and a rising cost of living heighten fiscal strains. Among the notable laggards, LVMH fell 0.8%, TotalEnergies declined 1.1%, BNP Paribas dropped 1%, AXA lost 2.5%, and Essilor slipped 1.1%. In contrast, STMicroelectronics climbed 2.1%.