The CAC 40 declined by 0.6% to 8,329 on Thursday, undoing the gains observed in the prior session and reflecting a downward trend among European counterparts as investors evaluated corporate earnings and related developments. TotalEnergies experienced a decline of 1.6% following the company’s warning that LNG earnings are expected to decrease significantly due to weakened demand in Europe.

However, the company anticipates an increase in Q2 profit, bolstered by a rise in energy prices associated with the conflict in the Middle East. STMicroelectronics also declined by 1.2%, reflecting the broader weakness in the technology sector as investors remained sceptical about whether earnings growth can substantiate elevated AI-driven valuations.

Meanwhile, sentiment remained fragile as the US continued strikes on Iran for a fifth consecutive day, with Iran retaliating by targeting US bases in Kuwait and Jordan. The recent escalation has reignited apprehensions regarding inflation and interest rates, as markets are now fully anticipating a rate hike from the ECB in September, with an additional increase projected by spring 2027.