The CAC 40 declined by 0.4% to 8,544 on Tuesday, marking its sixth consecutive session of losses and reaching a near three-week low as optimism surrounding a Middle East peace agreement and the reopening of the Strait of Hormuz continued to diminish. With the temporary US-Iran ceasefire now expired, Tehran has declared its intention to adopt a “fully offensive” military posture in response to Washington’s decision not to extend the truce.

Domestically, Prime Minister Sébastien Lecornu is poised to present a 2027 budget with the objective of lowering the deficit to below 5%. He cautions that a lack of agreement could postpone the fiscal strategy until the following year, potentially escalating the deficit to as much as 6.5%. Among individual stocks, Schneider Electric declined by 1.2%, Safran by 1.1%, and STMicroelectronics by 3.3%, leading the downward movement.

In contrast, TotalEnergies increased by 1.3%, reaching its highest level in over two months, bolstered by rising oil prices as optimism for a Middle East peace agreement diminishes and the Strait of Hormuz reopens.