The CAC 40 declined by 0.2% to approximately 8,283 on Wednesday, marking a third consecutive session of losses and reaching its lowest point in over a month, as rising tensions in the Middle East continued to unsettle investors. The latest developments have resulted in an increase in oil prices, which has heightened inflation concerns and intensified expectations for a more stringent monetary policy.

With the eurozone inflation rate rising to 3.3% and energy prices climbing, market participants are progressively factoring in an additional rate hike from the ECB later this month. On the economic front, France’s state budget deficit expanded to EUR 145.9 billion in the period from January to July 2026, compared to EUR 142 billion during the same timeframe the previous year. Revenues increased by 3.3% year-on-year, reaching EUR 204.72 billion, whereas expenditures grew by 4.8%, totalling EUR 328.1 billion.

LVMH declined by 1.6%, reaching a level not seen in over two months. Other significant underperformers included Kering, down 1.1%, Publicis, which fell by 1.5%, and Société Générale, decreasing by 1.0%. On the upside, L’Oréal experienced a gain of 1.1%, STMicroelectronics saw an advance of 1.4%, and BNP Paribas recorded an increase of 0.6%.