CAC 40 Dips as Kering Plummets

Kering

France’s equity benchmark CAC 40 experienced a decline Wednesday morning, influenced by several underwhelming corporate announcements. Meanwhile, investors maintained their focus on geopolitical developments, especially the reports regarding the potential second round of ceasefire discussions between the U.S. and Iran later in the week. U.S. President Donald Trump reportedly indicated to Fox News that he perceives the war as being on the verge of conclusion. The President indicated that discussions might recommence ‘within the next two days’.

The United States has indicated the establishment of two new prerequisites prior to resuming negotiations. Washington seeks a complete and unrestricted reopening of the Strait of Hormuz, as reported by Israel Hayom, indicating that the Americans maintain a stance of reciprocity. The CAC 40, having previously declined to 8,258.29, recorded a decrease of 51.02 points or 0.61%, standing at 8,276.84 just prior to noon.

  • Kering experienced a decline of nearly 10% following the announcement that sales at its flagship brand, Gucci, have recorded their eleventh consecutive quarterly decrease. The luxury goods company disclosed first-quarter 2026 revenue of 3.57 billion euros, indicating a 6% decline as reported, yet demonstrating stability on a comparable basis.
  • Hermes International experienced a decline of 8.4% following the announcement of a deceleration in sales growth for the first quarter. In the first quarter, the Group reported revenue of EUR 4.070 billion, a decline from EUR 4.129 billion in the corresponding period of the previous year. Revenue from the ready-to-wear and accessories segment declined to EUR 1.076 billion, down from EUR 1.149 billion in the prior year.
  • Safran experienced a decline of nearly 2%, whereas Saint Gobain, Airbus, Societe Generale, BNP Paribas, and ArcelorMittal recorded losses ranging from 0.6% to 1.1%.
  • Stellantis experienced an increase of approximately 3.5%. The Franco-Italian automaker announced a 12 percent increase in global shipments during the first quarter.
  • Sanofi experienced an increase of 1.2%, whereas Pernod Ricard, Capgemini, Orange, Renault, and Euronext saw gains ranging from 0.5% to 0.9%.

In economic news, France’s harmonized consumer price inflation experienced a slight acceleration beyond initial estimates in March, as confirmed by final data from the statistical office INSEE. In March, EU harmonized inflation reached 2%, an increase from the preliminary estimate of 1.9% and surpassing the 1.1% rise observed in February. Simultaneously, the statistical office affirmed that consumer price inflation increased to 1.7%, consistent with prior estimates, up from 0.9% in February. This marked the most significant increase since August 2024.

The overall inflationary acceleration was propelled by a notable 7.4% increase in energy prices. Recent data indicated that services inflation increased to 1.7%, up from the previous rate of 1.6%. In the interim, food inflation moderated to 1.8% from 2%, while prices for manufactured products declined by 0.5%. On a monthly basis, consumer price inflation increased to 1% from 0.6%. The preliminary assessment indicated an increase of 0.9%. In March, Eurozone industrial output experienced a rise of 0.4%, following a decline of 0.8% in February, according to data released by Eurostat. Industrial output was projected to increase by 0.3% in March.