CAC 40 Takes a Dive Amid Broad Sell-Off

Cac Futures Updates

French stocks experienced a significant decline on Monday morning, driven by escalating geopolitical tensions and the Trump administration’s announcement of additional tariffs on several EU nations, which contributed to a bearish sentiment in the market. In the interim, the nation advanced towards a budget consensus as Prime Minister Sebastien Lecomu made certain concessions to garner support from socialist factions.

The benchmark CAC 40 experienced a decline of 127.00 points, reflecting a decrease of 1.54%, currently standing at 8,131.94. U.S. President Donald Trump has reiterated his intention to pursue the acquisition of Greenland, asserting that NATO has cautioned Denmark for years regarding the “Russian threat” to Greenland and alleging that Copenhagen has not taken appropriate measures.It is now the appropriate moment, and the task will be accomplished. In a post on his Truth Social platform, Trump commented ahead of this week’s World Economic Forum Annual Meeting in Davos.

  • STMicroElectronics experienced a decline of 4.3%, positioning it as the largest detractor within the CAC 40 index.
  • LVMH experienced a decline of nearly 4%, while Hermes International saw a decrease of approximately 3.1%.
  • Kering, Hermes International, Dassault Systemes, Renault, Capgemini, and Saint Gobain experienced declines ranging from 2% to 2.7%.
  • Pernod Ricard and Schneider Electric experienced a decline of nearly 2%.
  • Legrand, Michelin, Stellantis, BNP Paribas, Sanofi, TotalEnergies, AXA, Unibail Rodamco, and EssilorLuxottica experienced significant declines.
  • Thales experienced an increase of over 3% following its reaffirmation of the earnings outlook for 2025.
  • Orange experienced an increase of 2.3%. Euronext, Safran, and Carrefour saw gains ranging from 0.4% to 0.8%.

The announcement by the U.S. President regarding a 10% tariff on several EU countries, effective next month, which elevates the overall tariff on imports to the U.S. to 25%, alongside reports of the EU contemplating retaliatory measures against the U.S., exerted downward pressure on stocks. The European Union is reportedly contemplating the imposition of tariffs amounting to 93 billion euros on goods from the United States or limiting access for American companies to its internal market.