CAC 40 Falls 1.4% Amid Geopolitical and Tariff Worries

CAC Futures Updates

France’s equity benchmark CAC 40 fell to a three-week low on Tuesday as stocks declined under selling pressure, driven by escalating geopolitical tensions and new tariff threats from U.S. President Donald Trump. The United States has positioned military aircraft at Pituffik Space Base in Greenland, leading Denmark to swiftly send its Army chief and troops to the Arctic Island, marking a significant escalation in tensions.

U.S. President Donald Trump has issued a warning regarding the potential imposition of 200% tariffs on French wine and champagne, following France’s refusal to accept his invitation to participate in the proposed Board of Peace initiative designed to address global conflicts. The French government has stated that it “does not intend to answer favorably.” The CAC 40 experienced a decline of 113.37 points, translating to a decrease of 1.4%, settling at 7,998.65 approximately thirty minutes after noon.

  • Kering, the largest decliner in the benchmark index, experienced a decline of approximately 3.5%.
  • LVMH fell by 2.8%, while Hermes International, Capgemini, Schneider Electric, Eiffage, Saint Gobain, Stellantis, Eurofins Scientific, and Airbus saw losses ranging from 2% to 2.5%.
  • Legrand, Thales, Safran, Veolia Environment, BNP Paribas, Sanofi, ArcelorMittal, AXA, Bouygues, Vinci, Credit Agricole, STMicroElectronics, Engie, Societe Generale, and Unibail Rodamco experienced declines ranging from 1% to 1.9%.
  • Pernod Ricard, Publicis Groupe, Dassault Systemes, Renault, and TotalEnergies recorded slight increases.

A report indicated that the current account surplus in the euro area experienced a significant decline in November, attributed to a reduction in the surplus from goods trade and an expansion of the primary income deficit. The seasonally and working-day-adjusted current account surplus decreased to EUR 9.0 billion, down from EUR 27.0 billion in October. During the corresponding period of the previous year, the surplus amounted to EUR 23.0 billion. The surplus in goods trade contracted to EUR 24 billion, down from EUR 33 billion in the preceding month, while the surplus in services fell to EUR 12 billion from EUR 13 billion.