The CAC 40 experienced a decline of 0.6% on Friday, pulling back after two consecutive days of increases and positioning itself for a sixth consecutive weekly drop as investors assessed the recent actions taken by prominent central banks. Notably, the Federal Reserve and the Bank of Japan raised rates earlier this week, while the Bank of England maintained its current interest rates.

Meanwhile, traders reduced their expectations for additional ECB tightening, even in light of the Federal Reserve’s more hawkish position, pointing to worries that consistently elevated energy prices might hinder economic growth and ultimately mitigate inflationary pressures. Domestically, Prime Minister Sébastien Lecornu is endeavouring to formulate a budget aimed at deficit reduction for 2027, as increasing pressures from the bond market and a surging cost of living exacerbate fiscal challenges.

Among the notable laggards, LVMH experienced a decline of 0.8%, TotalEnergies saw a decrease of 1.1%, BNP Paribas recorded a drop of 1%, AXA faced a loss of 2.5%, and Essilor slipped by 1.1%. In contrast, STMicroelectronics experienced an increase of 2.1%.