CAC 40 Weighed by Inflation Concerns

The CAC 40 fell 0.9% to close at 7,964 on Wednesday amid a lack of progress in US-Iran negotiations. Oil and fuel prices rose amid concerns over energy-driven inflation, pressuring credit-sensitive stocks as expectations for more hawkish central-bank increased. France’s preliminary CPI data showed annual inflation up to 3% in September, its highest level since February 2024. Financials fell, with BNP Paribas down 2.5% and AXA losing 2.2%. Industrials were mostly lower, with Schneider Electric falling 1.5%, Thales down 0.9%, and Vinci shedding 1.4%. The pharmaceutical and chemical subsectors gained, with Sanofi up 1.6%, EssilorLuxottica rising 0.7%, and Air Liquide adding 1.2%. Meanwhile, household consumption of goods in France fell 0.5% in August, reversing a 0.4% increase in July and marking the first monthly decline since April. Luxury stocks posted losses, with LVMH and Hermes both down 1.2%. TotalEnergies lost 3.1% as investors took profits. On the month, the CAC 40 lost 5.2%.