CAC 40: Paris Drops Below 8,000 Points, Weighed Down by Cyclical Stocks

A European Session Under Pressure

The downturn is not sparing other major markets on the Continent. The German DAX fell 1.58% during the session, while the London FTSE 100 declined by 1.38%. The STOXX 600 shed 0.54%, highlighting the significant underperformance of Paris and Frankfurt compared to the European average.

The contrast with Wall Street is striking: during the previous close, the Dow Jones had risen by 0.75%, the S&P 500 by 0.77%, and the Nasdaq by 0.88%. In contrast, Asia ended in negative territory, with the Nikkei 225 dropping 1.99% and the Hang Seng down 1.62% at the close. This dichotomy between a somber Asia, a faltering Europe, and more resilient American stocks sets the tone for a decidedly defensive Parisian session, where the disparity between gains and losses is undeniable.

In a bearish market, safe havens and defensive stocks stand out. Sanofi leads the way with a gain of 0.98% to 73.96 euros, reflecting a shift towards healthcare as the news on the Hantavirus seems, at this stage, rather reassuring. The basic consumer goods sector also shows resilience, with Danone up by 0.26% to 62.02 euros and Pernod Ricard gaining 0.23% to 61.30 euros.

French technology is an exception among the rising values: Dassault Systèmes is up by 0.71% to 19.76 euros. Renault rounds out this small group of gainers with an increase of 0.71% to 28.51 euros. However, these gains, all below 1%, struggle to offset the broader declines elsewhere on the board. The day's chart of increases, limited to seven stocks, highlights the predominantly bearish sentiment of the session.

Semiconductors, Steel, and Banking at the Forefront

The most significant declines are hitting cyclical sectors and those exposed to international trade. STMicroelectronics trails with a drop of 4.82% to 52.50 euros, closely followed by ArcelorMittal, which loses 4.22% to 52.68 euros. The steel giant announced earlier this week the success of a $1 billion bond issuance at 5.375%, intended for the group's general purposes.

The aerospace and defense sectors are not spared: Safran drops 3.32% to 273.80 euros. The banking sector also faces a notable decline, with BNP Paribas falling 2.83% to 89.43 euros. The European tech industry follows the same trend with Schneider Electric, down by 2.80% to 263.35 euros.

This concentration of losses in semiconductors, steel, aerospace, banks, and capital goods marks a session clearly dominated by skepticism towards cyclicals, while defensive stocks capture the rare purchases of the day by mid-session.