The CAC 40 Index Closes 0.93% Lower

The CAC 40 fell 0.8% to close at 7,834 on Monday, hitting a 7-month low on concerns over France’s political and fiscal outlook. Opposition parties remain reluctant to compromise with President Macron’s outgoing administration ahead of next year’s election, with far-right candidate Marine Le Pen and far-left Jean-Luc Mélenchon expected to advance to the runoff. Meanwhile, the president and chief investment strategist at Yardeni Research said Sunday that France could be nearing a full-blown debt crisis. The government recently unveiled a €54 billion fiscal effort to rein in spending and reduce the deficit to 5% of GDP in 2027 from 5.4% this year. Schneider Electric shares tumbled 10% after announcing plans to acquire PTC in the largest deal in the company’s history, raising concerns over valuation, financing and its ability to deliver promised synergies. RBC downgraded PTC to Sector Perform from Outperform. Other laggards included Hermes (-1%), Sanofi (-1.2%) and Legrand (-1%).

The CAC 40 Index decreased 74 points or 0.93 percent on Monday to close at 7823 points. The decline was led by Schneider Electric (-9.72%), Danone (-2.30%) and Saint-Gobain (-1.82%). On the upside, the strongest performers were Dassault Systemes (3.73%), Stellantis NV (2.34%) and Renault (2.25%).

The CAC 40 fell 0.9% to 7,824 on Monday, hitting its lowest level since March as concerns over France’s political and fiscal outlook intensified. Opposition parties remain reluctant to compromise with President Emmanuel Macron’s outgoing administration ahead of next year’s election, with far-right candidate Marine Le Pen and far-left rival Jean-Luc Mélenchon expected to advance to the second-round runoff. Meanwhile, the president and chief investment strategist at Yardeni Research Inc. said in an Oct. 4 note that France could be nearing a full-blown debt crisis. The French government recently unveiled a €54 billion ($61.2 billion) fiscal effort to rein in spending and bring the deficit down to 5% of GDP in 2027 from 5.4% this year. Financial stocks remained under pressure, particularly BNP Paribas (-1.6%), Crédit Agricole (-1.4%) and Société Générale (-2.5%). Other notable decliners included Schneider Electric (-7.1%), Hermès (-2.5%) and Danone (-1.2%).