The CAC 40 Index Opens 1.22% Lower

The CAC 40 fell 1.1% to 7,687 on Thursday, extending losses from the previous session and hitting its lowest level since March as escalating Middle East tensions weighed on risk sentiment. Reports that the White House had asked the Pentagon to prepare strike options against Iran ahead of the midterm elections lifted oil prices and pushed bond yields higher. Bank of France Governor and ECB Governing Council member Emmanuel Moulin warned that the Middle East crisis is affecting economies globally through its impact on inflation and bond markets. His comments came as investors remained wary on France’s fiscal challenges, including efforts to pass a budget and reduce the country's large deficit. Most stocks traded lower, led by L’Oréal (-1.0%), LVMH (-1.1%), Airbus (-1.5%), and Safran (-2.2%). Financial stocks also remained under pressure, particularly BNP Paribas (-2.3%), Crédit Agricole (-1.6%), and Société Générale (-2.9%).

The CAC 40 Index is losing 95 points. Losses were led by STMicroelectronics (-3.21%), Stellantis NV (-3.11%) and ArcelorMittal (-2.64%).

The CAC 40 fell 1.2% to close at 7,769 on Wednesday, reversing the previous session’s gains and hitting its lowest level since March as geopolitical tensions and concerns over France’s fiscal outlook weighed on sentiment. Oil prices rose on renewed supply risks, raising inflationary pressures, while global yields resumed their rally. Meanwhile, ECB Governing Council member Emmanuel Moulin said France’s bond-market situation is serious but does not warrant intervention. Concerns over the government deficit persisted, weighing on credit-sensitive stocks. BNP Paribas shed 3.9% and Societe Generale lost 5%. Industrials also declined, with Safran down 3% and Schneider Electric losing 2.3%. On the economic front, France’s trade deficit narrowed to €6.1 billion in August from a revised €6.6 billion in July, beating expectations for a €6.5 billion shortfall. Luxury stocks outperformed, with LVMH up 0.7%.