CAC 40 Dips Almost 0.4% Amid Rising Oil Prices

Cac Futures Updates

The French stock market’s benchmark index CAC 40 experienced a decline on Thursday, as investors adopted a cautious stance in response to escalating tensions in the Middle East. Oil prices increased, raising apprehensions regarding inflation and the potential for interest rate increases by central banks. Brent crude futures rose to $95.98 a barrel before retreating to approximately $94.00, maintaining an increase of nearly 2% from the previous close.

According to source, the U.S. executed additional strikes in Iran near the Strait of Hormuz during the early hours of Thursday, marking the second instance of military action within a 48-hour period. Iran indicated that a resurgence of conflict was improbable, whereas Trump remarked during a televised cabinet meeting at the White House that Tehran was seeking an agreement but had not yet presented sufficient concessions. Iran is highly motivated; they are eager to reach an agreement. As of now, they have yet to reach that point. “We’re not satisfied with it, but we will be,” he stated. ‘Either that or we’ll have to just finish the job.’

The CAC 40, which fell to 8,161.99, experienced a decline of 30.56 points or 0.37% at 8,177.33 shortly after noon.

  • Dassault Systemes experienced a decline of approximately 2.3%.
  • Societe Generale, LVMH, Hermes International, Eiffage, Eurofins Scientific, and Danone experienced declines ranging from 1.4% to 2%.
  • Sanofi experienced a decline of 14% despite the FDA granting priority review for venglustat as a treatment for Gaucher disease.
  • Stellantis, Saint-Gobain, AXA, Pernod Ricard, Bureau Veritas, BNP Paribas, Michelin, Credit Agricole, Renault, Engie, Capgemini, and Veolia Environment experienced declines ranging from 0.7% to 1.2%.
  • STMicroelectronics experienced an increase of 2.55%, while Thales saw a rise of approximately 2.4%.
  • Airbus, L’Oreal, Safran, Air Liquide, and TotalEnergies experienced an increase ranging from 0.5% to 1%.

Data indicated that French domestic producer prices experienced a decline of 2.1% month-on-month in April, reversing a previously revised increase of 1.9% in March. The decline was the most pronounced since April of the previous year. On an annual basis, domestic producer prices increased by 2.1%, marking the highest rise since June 2023, following a period of stagnation in March.