CAC 40 Falls Amid Fiscal Concerns and Mixed Earnings
The CAC 40 fell 1.4% to close at 7,811 on Thursday amid mixed corporate earnings, rising borrowing costs and political uncertainty. Hermès dropped 4.9% after reporting revenue below estimates. Kering lost 1.3% following a decline in sales. In contrast, L’Oréal gained 1.8% on stronger-than-expected sales growth. The 10-year yield climbed amid concerns over the government’s ability to restore public finances amid ongoing political turmoil and planned protests. Moody’s review of France’s Aa3 sovereign credit rating is due Friday, with its negative outlook raising the risk of a downgrade that could further increase borrowing costs. Financial stocks tumbled, with BNP Paribas falling 4.9% and AXA losing 2.7%. Industrials declined, Safran fell 3.8% and Legrand shed 5.8%. Tech stocks came under pressure as disappointing results from major US technology companies revived concerns over the profitability of heavy AI investments. STMicroelectronics fell 4.9%, while Schneider Electric lost 5.4%.
The CAC 40 fell 1.4% to close at 7,811 on Thursday amid mixed corporate earnings, rising borrowing costs and political uncertainty. Hermès dropped 4.9% after reporting revenue below estimates. Kering lost 1.3% following a decline in sales. In contrast, L’Oréal gained 1.8% on stronger-than-expected sales growth.
The 10-year yield climbed amid concerns over the government’s ability to restore public finances amid ongoing political turmoil and planned protests. Moody’s review of France’s Aa3 sovereign credit rating is due Friday, with its negative outlook raising the risk of a downgrade that could further increase borrowing costs. Financial stocks tumbled, with BNP Paribas falling 4.9% and AXA losing 2.7%. Industrials declined, Safran fell 3.8% and Legrand shed 5.8%.
Tech stocks came under pressure as disappointing results from major US technology companies revived concerns over the profitability of heavy AI investments. STMicroelectronics fell 4.9%, while Schneider Electric lost 5.4%.