French Stocks Hit over 6-Month Low

The CAC 40 fell 0.7% to 7,808 on Wednesday, reversing the previous session’s gains and hitting its lowest level since March, as geopolitical tensions and concerns over France’s fiscal outlook weighed on sentiment. Oil prices rose as concerns over further Houthi attacks on Saudi Arabia outweighed relief from signs of recovering Middle Eastern oil supplies. In France, as investors doubt whether the government can cut the deficit to 5.0% of GDP in 2027, ECB Governing Council member Emmanuel Moulin said the country’s bond-market situation is serious but does not warrant intervention. On the economic front, France’s trade deficit narrowed to €6.1 billion in August from a revised €6.6 billion in July, beating expectations for a €6.5 billion shortfall. Exports fell 0.8% mom to €54.2 billion, while imports declined 1.5% to €60.3 billion. Most stocks traded lower, led by financials, with BNP Paribas (-1.2%), Crédit Agricole (-1.1%), and Société Générale (-1.6%) among the biggest drags.