CAC 40 drops 0.4% as oil lifts inflation fears
CAC 40 fell 0.4% to close at 8,302, reversing early gains amid rising oil prices and higher bets on ECB tightening. Eurozone inflation accelerated to 3.3% in August; luxury and industrials lagged.
The CAC 40 fell 0.4% to close at 8,302 on Thursday, reversing early gains and tracking broader weakness in global equities.
Rising oil prices amid escalating Middle East tensions added to inflationary pressures, while investors increased bets on further ECB tightening.
Higher energy costs and expectations of a Fed hike also pushed global bond yields higher.
Eurozone inflation accelerated for a second consecutive month to 3.3% in August, in line with forecasts and the highest since September 2023.
Luxury stocks fell, with LVMH down 1.8%, L’Oreal losing 1.4%, Hermes shedding 2.4% and Kering tumbling 2.7%.
Industrials also declined, led by Safran (-2.6%) and Thales (-2.1%).
Tech stocks tracked losses in Wall Street chipmakers.
In contrast, TotalEnergies gained 2.7% on higher oil prices, while Air Liquide rose 2.1% after reports that Elliott Investment Management had built a stake.