France’s equity benchmark CAC 40 experienced a significant decline on Friday, as stocks plummeted amid worries regarding the conflict in the Middle East, coupled with dissatisfaction over the absence of tangible results thus far from the U.S.-China summit in Beijing. A degree of profit-taking following recent gains also played a role in the market’s decline. Concerns regarding the Hormuz Strait persist, notwithstanding the assertion from Iran’s Revolutionary Guards that approximately 30 vessels have traversed the strait since Wednesday evening.
U.S. President Donald Trump stated that he will not exhibit significantly greater patience towards Tehran. Trump’s more assertive position regarding the Middle East has heightened concerns that the US may reinitiate military actions against Iran. Oil prices increased by almost 4%, raising concerns about inflation. The CAC 40 experienced a decline of 110.66 points, reflecting a decrease of 1.37%, settling at 7,971.61 shortly after noon.
- STMicroelectronics experienced a decline exceeding 5% due to profit-taking activities.
- ArcelorMittal experienced a decline of approximately 4.5%, whereas BNP Paribas, Safran, and Schneider Electric saw decreases ranging from 2.7% to 3%.
- Accor, Stellantis, Saint Gobain, Societe Generale, Credit Agricole, Airbus, Kering, and Legrand experienced declines ranging from 1.7% to 2.3%.
- Veolia Environment, Engie, Vinci, Michelin, Bouygues, Unibail Rodamco, LVMH, and Eiffage experienced a significant decline.
- Sanofi experienced an increase of nearly 1%.
- Renault increased by 0.6%, whereas Dassault Systemes, TotalEnergies, and Danone experienced slight gains.