The CAC 40 Index Opens 0.09% Lower

The CAC 40 fell 0.2% to 7,922 on Friday, retreating after two consecutive sessions of gains as investors grew cautious over renewed trade tensions between the EU and China. The bloc is considering new powers to restrict access to its single market and assessing import data for potential surges, a preliminary step toward imposing quotas on additional goods from China and other economies. While China has warned of retaliation against new EU trade measures or discriminatory restrictions targeting Chinese companies and products, Beijing has also signaled its willingness to work with the bloc to address global imbalances. Investors also continued to assess the outlook for the artificial intelligence sector following a recent sell-off driven by concerns over AI spending. Among the biggest decliners, L’Oréal fell 0.9%, LVMH dropped 1.2%, Schneider Electric lost 1%, and Hermès slipped 0.9%. Despite Friday’s retreat, the index remained on track to snap a two-week losing streak.

The CAC 40 Index is losing 7 points. Losses were led by Schneider Electric (-1.47%), LVMH (-1.08%) and Carrefour (-0.90%). Offsetting the fall, top gainers were Thales (1.89%), Renault (1.84%) and Pernod Ricard (1.32%).

The CAC 40 rose 0.8% to close at 7,935 on Thursday, supported by gains in luxury and industrial stocks. Luxury shares rebounded after Chinese trade data showed imports rising 31% year-on-year in September to a record high, suggesting that Chinese consumer demand has not collapsed, contrary to concerns raised by LVMH’s recent results. LVMH rose 2.2%, Hermès gained 3.3%, Kering added 1.3%, and L’Oréal advanced 3.2%. Industrial stocks also gained, with defense contractors leading as the conflict in the Middle East showed no sign of easing. Airbus rose 2.4%, while Thales gained 1.3%. In contrast, Schneider Electric fell 2.4% and STMicroelectronics dropped 3.8%, tracking a selloff in US semiconductor stocks. Financial stocks were mostly lower after French annual inflation rose to 3.4% in September on an EU-harmonized basis, its highest level since January 2024. BNP Paribas fell 0.7%, while Crédit Agricole lost 1%.