CAC 40 Falls to 18-Week Low
The CAC 40 fell 0.5% to close at 8,036 on Tuesday, reversing early gains amid broad-based losses and hitting an 18-week low. Heavyweight luxury stocks closed lower as a weakening economic backdrop is producing mixed data from China and raising concerns over a potential moderation in US spending. Last week, RBC downgraded LVMH (-1%) to sector perform from outperform and cut its 2027 earnings-per-share estimates for Kering (-2%) and Hermès (-2.1%). Elsewhere, Vinci (-2.4%), Eiffage (-3.1%) and ADP (-0.7%) fell after the government said it was considering higher taxes on transport infrastructure. The proposed tax hike could cut 2027 earnings for the companies by 9% to 12%, according to Morgan Stanley. Stellantis lost 3.5% after saying it would temporarily suspend operations at some plants in France next month amid a shortage of long-range EV batteries and efforts to contain dealer inventories. TotalEnergies shed 2.4% on lower oil prices.
5% to close at 8,036 on Tuesday, reversing early gains amid broad-based losses and hitting an 18-week low. Heavyweight luxury stocks closed lower as a weakening economic backdrop is producing mixed data from China and raising concerns over a potential moderation in US spending. 1%). 7%) fell after the government said it was considering higher taxes on transport infrastructure.
The proposed tax hike could cut 2027 earnings for the companies by 9% to 12%, according to Morgan Stanley. 5% after saying it would temporarily suspend operations at some plants in France next month amid a shortage of long-range EV batteries and efforts to contain dealer inventories. 4% on lower oil prices.