French stocks declined on Thursday, continuing their recent downward trend, as increasing oil prices and bond yields raised concerns about inflation and interest rates, leading traders to reduce their long positions. The benchmark CAC 40, which declined to 7,679.36, was down 68.77 points or 0.89% at 7,700.44, shortly after noon. German stocks experienced a significant decline on Thursday, driven by escalating concerns regarding inflation and interest rates. This downturn coincided with a surge in oil prices and an increase in bond yields, attributed to heightened tensions in the Middle East.
Oil prices experienced a significant increase due to heightened apprehensions regarding a potential escalation in the U.S.-Iran conflict. Reports indicate that the White House has requested the Pentagon to formulate options for a potential strike on Iran prior to the midterm elections; however, a definitive decision has yet to be reached. Meanwhile, oil companies operating in the Gulf of Mexico have initiated a reduction in production and the evacuation of personnel from offshore facilities. Brent crude front-month futures surged to $105.20, reflecting an increase of more than 5%. The yield on France’s 10-year Government Bonds increased to 4.975% today.
- Stellantis experienced a decline of approximately 4.2%.
- STMicroelectronics, ArcelorMittal and Safran experienced a decline ranging from 3.7% to 4%.
- Renault and Kering experienced declines of 2.5% and 2.2%, respectively.
- Societe Generale, Michelin, BNP Paribas, Legrand, Unibail Rodamco, Air Liquide, EssilorLuxottica, Vinci, Credit Agricole, Saint-Gobain, Airbus, LVMH, Accor, AXA, Bouygues, Euronext, and Eiffage experienced declines ranging from 1% to 2.2%.
- Capgemini experienced an increase of 3.25%.
- TotalEnergies experienced a 2.2% increase, buoyed by rising oil prices. Publicis Groupe, Danone, and Dassault Systemes recorded slight increases.
