The French stock market is experiencing a significant decline on Monday, with shares across various sectors sharply decreasing due to selling pressure, influenced by escalating tensions in the Middle East. Tensions escalate in the Middle East as the U.S. and Israel execute coordinated strikes on Iran, prompting retaliatory actions from Tehran against U.S. bases throughout the region. Furthermore, concerns regarding inflation have reemerged as Brent crude prices surged more than 10% to reach their peak since January 2025, driven by apprehensions about potential supply disruptions in the Middle East.

Equities in the banking, luxury, and automobile sectors are experiencing significant declines, whereas defense stocks are demonstrating robust support. The benchmark CAC 40, which fell to 8,390.09, experiencing a decline of approximately 2.2% earlier in the session, was down 140.40 points or 1.63% at 8,440.38 just before noon. With the exception of TotalEnergies, which saw an increase of 4.3%, Thales, which rose by 3.6%, and Eurofins Scientific, which experienced a slight uptick, the remainder of the stocks within the CAC 40 index are positioned in negative territory.

• Accor has experienced a decline of 8.6%, marking it as the most significant underperformer.
• Stellantis, Kering, Renault, LVMH, Societe Generale, Saint Gobain, BNP Paribas, Hermes International, and Michelin have experienced declines in the range of 3% to 5%.
• Schneider Electric, Legrand, Credit Agricole, L’Oreal, Engine, Vinci, Unibail Rodamco, STMicroelectronics, Veolia Environment, EssilorLuxottica, Bouygues, and Capgemini have experienced declines ranging from 1.5% to 3%.

In economic news, data indicated that France’s HCOB Manufacturing PMI decreased to 50.1 in February, down from January’s 51.2, with a revision upwards from initial estimates of 49.9, suggesting widespread stagnation in the sector.