The CAC 40 declined by 0.6% to 8,269 on Wednesday, reversing the gains of the prior session and reaching its lowest point since July, as rising tensions in the Middle East restrained risk appetite. Oil prices continued to be high following Iran’s announcement of attacks on two US vessels and eight oil tankers in the Gulf, which it described as retaliation for American strikes on five Iranian tankers near Kharg Island.

The latest developments have intensified inflation concerns and bolstered expectations that the European Central Bank will increase interest rates by 25 basis points at Thursday’s policy meeting. In the domestic arena, industrial production experienced a decline of 0.4% month-on-month in July, contrary to market forecasts that anticipated a 0.3% increase, thereby extending the revised 0.1% decrease observed in June.

Luxury stocks spearheaded the decline, as LVMH fell by 1.4%, reaching its lowest point since November 2020, while Kering experienced a drop of 2.3%. Elsewhere, Airbus experienced a decline of 1.6% following a revision of its long-term demand forecast for single-aisle aircraft in China.