The CAC 40 declined by 0.3% to 8,434 on Thursday, reversing the gains of the previous session and reaching its lowest point in a month. This downturn reflects a growing caution among investors in anticipation of Fitch’s assessment of France’s sovereign credit rating, alongside the ongoing budget negotiations and the shifting dynamics of the political landscape in the country. Attention is directed toward Fitch’s evaluation set for Friday, following the agency’s downgrade of France to A+ in the previous year.

Political uncertainty has intensified the pressure, as presidential candidates are poised to unveil their policies to business leaders later today in the inaugural significant face-to-face engagement of the 2027 presidential campaign. Investors are exercising caution in light of France’s increasingly difficult economic environment characterised by decelerating growth, elevated inflation, and a rise in unemployment.

LVMH, L’Oréal, and TotalEnergies each experienced a decline of approximately 1%. In contrast, STMicroelectronics experienced a notable increase of 3.6%, reflecting the overall strength observed in the technology sector following NVIDIA’s robust Q2 results and optimistic revenue projections.