The CAC 40 declined by 0.2% to 8,263 on Thursday, marking a fourth consecutive session of losses and reaching its lowest point since mid-June, primarily driven by a downturn in the luxury sector. LVMH declined by 1.9%, while Hermès and Kering experienced a decrease of 2.4%, as the sector continued to face challenges despite initial indications of stabilising consumer sentiment.

Investors exhibited a degree of caution as stimulus measures in China, the industry’s pivotal growth market, have not yet resulted in a significant recovery in demand. This situation has left luxury groups grappling to regain momentum following the disruptions instigated by the Iran conflict.

In contrast, Legrand experienced a 2.6% increase following Deutsche Bank’s upgrade of the stock to “Buy” from “Hold. Further influencing sentiment, final data revealed the Composite PMI declining to 48.5 in August from 49.4 in July, as a more pronounced contraction in services (48 compared to 49.6) outweighed an expansion in manufacturing (51.1 versus 49.8).