CAC 40 Falls to Six-Month Low

The CAC 40 fell 1.6% to close at 7,835 on Thursday, hitting its lowest level since late March amid growing concerns over France’s deteriorating public finances. France presented its 2027 budget bill, seeking to cut spending and raise taxes as it tries to balance strained debt markets with public discontent over the rising cost of living. The country has struggled to contain its debt, with the budget deficit still well above the eurozone’s 3% ceiling. Under the draft budget, the government aims to reduce the deficit to 5% of GDP through 43 billion euros in spending cuts and other measures. France’s 10-year OAT yield surged above 4.9%, reaching its highest level since July 2002 after posting its biggest quarterly increase in nearly four decades. Losses were broad-based, with LVMH down 2.7%, BNP Paribas falling 3.6% and Airbus losing 2.6%.