CAC 40 slides 0.8% amid renewed inflation and Middle East supply worries
CAC 40 fell 0.8% to close at 8,334 on renewed inflationary pressures tied to the US-Iran war. Oil rebounded after exchanged strikes, while Strait of Hormuz shipping concerns lifted crude and weighed on energy-linked stocks.
The CAC 40 fell 0.8% to close at 8,334 on Monday amid renewed inflationary pressures stemming from the US-Iran war.
Oil prices rebounded as the US and Iran exchanged strikes for the first time in roughly a month, while fresh concerns over shipping through the Strait of Hormuz added to supply risks.
Higher crude prices weighed on the index amid concerns over energy-driven inflation.
Luxury stocks declined as risk aversion increased, with LVMH losing 1.1%, L’Oreal shedding 1%, and Hermes retreating 1.1%.
Financials were mixed, with AXA down 1.2%.
Industrials underperformed, led by Airbus (-2.9%) and Safran (-2.1%).
Fitch Ratings affirmed France’s rating at ‘A+’ with a Stable Outlook.
However, high and rising public debt, a challenging political and social environment, and weak potential growth are seen as constraints.
Tech stocks tracked losses in the US, with Schneider Electric down 2.4% and STMicroelectronics losing 0.8%.
In contrast, TotalEnergies gained 1.1% on higher oil prices.