The CAC 40 Index Closes 0.11% Lower

The CAC 40 edged down 0.1% to close at 7,828 on Tuesday as luxury stocks fell following a weaker-than-expected third-quarter performance from LVMH. LVMH slipped 0.1% after reporting softer organic sales, weighed down by subdued demand in China. Hermès dropped 1.9% after UBS cut its price target, while Kering shed 1.4% after TD Cowen lowered its target. STMicroelectronics fell 3.8%, tracking weakness among US chipmakers as investors increasingly question the return-on-investment timelines for massive AI-related capital expenditures amid elevated borrowing costs. Industrial stocks were mostly lower, with Safran down 1.8%, Airbus losing 0.9%, Vinci retreating 0.9% and Sanofi falling 1.2%. Credit Agricole shed 2.5% amid reports that it plans to launch a digital retail bank in Germany and acquire IKB. TotalEnergies rose 1.1% as oil prices remained elevated. Other outperformers included L’Oréal, up 1.1%, and Publicis, which gained 2.2%.

The CAC 40 Index decreased 8 points or 0.11 percent on Tuesday to close at 7825 points. The decline was led by STMicroelectronics (-4.04%), Credit Agricole (-2.54%) and Hermes International (-2.29%). On the upside, the strongest performers were Pernod Ricard (4.48%), Capgemini (3.42%) and Edenred (3.18%).

The CAC 40 rose 0.4% to 7,860 on Tuesday, extending gains for a third consecutive session as lower oil prices and bond yields supported sentiment, helping offset growing concerns over AI valuations. Investors increasingly doubt the return-on-investment timelines for massive corporate capital expenditures in AI amid elevated borrowing costs. Gains were led by Société Générale (1.8%), L’Oréal (1.3%), Danone (1.3%), Orange (1.3%), and EssilorLuxottica (1.2%). In contrast, semiconductor giant STMicroelectronics bore the brunt of a broader tech retreat, falling 4.7%. Meanwhile, LVMH fell 1.0% after reporting weaker-than-expected third-quarter organic sales, weighed down by subdued demand in China. Hermès (-0.8%) and Kering (-0.2%) also fell, as LVMH’s performance, widely viewed as a bellwether for the luxury sector, fueled doubts about the strength of the broader recovery.