CAC 40 Extends Losses as Oil and Yields Climb

The CAC 40 Index decreased 34 points or 0.44 percent on Thursday to close at 7735 points. The decline was led by STMicroelectronics (-3.60%), Stellantis NV (-3.45%) and Unibail Rodamco (-3.22%). On the upside, the strongest performers were TotalEnergies SE (2.82%), Schneider Electric (2.48%) and Carrefour (1.22%).

The CAC 40 fell 0.5% to close at 7,730 on Thursday, extending losses and hitting a seven-month low amid strains in global bond markets and a surge in oil prices. Oil prices jumped on reports that the US is planning new strikes against Iran, risking the rebound in Middle Eastern oil exports and intensifying inflationary pressures. Global yields also extended their rally as a hawkish US Federal Reserve backdrop pressured credit-sensitive stocks. Bank of France Governor and ECB Governing Council member Emmanuel Moulin warned that the Middle East crisis is affecting global economies through inflation and bond markets. His comments came amid France’s fiscal challenges. Losses were broad-based, with financials and industrial stocks posting sharper losses. BNP paribas fell 2.4% and Safran lost 2.7%. Luxury stocks also posted losses, with LVMH down 1.9%. In contrast, TotalEnergies rose 2.9%.

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%).