The CAC 40 index declined by nearly 1% to fall below 8,050 on Tuesday, continuing its downward trajectory from the prior session and reaching a four-month low, influenced by increasing oil prices and global bond yields that dampened market sentiment. Oil prices have experienced an upward trajectory, with Brent crude surpassing $107 per barrel following assaults on Saudi energy infrastructure.

This development has heightened inflation concerns and fuelled anticipations for additional rate increases. Increased yields exerted additional pressure on equities following the US 10-year Treasury yield hitting 5%. In France, the final inflation figures indicated that annual consumer prices increased to 2.4% in August, up from 2.1% in July, marking a three-month peak.

Luxury stocks experienced a decline, influenced by diminished demand from China and restricted access to the travel hub in the Middle East. Luxury conglomerate LVMH experienced a decline of 2.2%, whereas Hermes saw a decrease of 1.3%. In contrast, the leading gainers included Capgemini at 6.6%, Dassault Systemes at 5%, and TP at 4.1%.