CAC 40: Paris Drops Nearly 1.5% at Midday, Luxury and Banking Sectors Under Pressure

A Paris trading session decidedly on the decline

The atmosphere is tense on Euronext Paris at the start of this week. At 12:30 PM, the CAC 40 drops 1.49% and falls below 8,000 points, following a STOXX 600 down by 0.86% and a DAX losing 0.78%. The SBF 120 declines by 1.39%. This contrasts sharply with the Asian markets, where the Hang Seng closed up 1.24% and the Nikkei gained 0.38%, and with Wall Street, where Nasdaq futures displayed a more constructive tone.

The backdrop continues to be dominated by the persistent strength of oil prices. Brent is still trading around $108 per barrel amid tensions surrounding the Strait of Hormuz and efforts to release ships blocked in the area. High crude prices maintain the risk of imported inflation and fuel caution regarding European assets, which are particularly vulnerable to the energy bill.

Luxury and Banks Lead the Retreat

The CAC 40 map shows a nearly widespread decline. The largest drop is recorded by EssilorLuxottica, which falls by 3.31% to 175.25 euros. The luxury sector is heavily penalized, with Hermès International dropping 3.02% to 1,574.50 euros and Kering losing 2.69% to 226.40 euros.

Banking stocks are not spared. Société Générale falls by 3.05% to 66.35 euros, marking one of the index's worst performances. The downturn also affects the health sector with Eurofins Scientific, down 2.91% to 57.30 euros. This concentration of steep declines in cyclical and discretionary consumption sectors sets the tone for a defensive session, where investors are lightening their positions in stocks most exposed to global economic conditions.

Some Growth Pockets in Semiconductors and Energy

In this constrained environment, the gains can be counted on one hand. STMicroelectronics stands out by rising 3.42% to 47.59 euros, marking the best performance on the CAC 40. The Franco-Italian semiconductor manufacturer is a notable exception in a market dominated by sell-offs.

Publicis Groupe advances by 0.88% to 80.08 euros, followed by Pernod Ricard (+0.54% at 63.18 euros) and Euronext (+0.42% at 143.50 euros). TotalEnergies rounds off the few gains, with a modest rise of 0.20% to 79.45 euros. The oil group benefits mechanically from the firmness of Brent at around 108 dollars, but fails to pull the market along in its wake.

The disparity is striking: seven gains against thirty-three losses within the Parisian benchmark index. This statistic alone summarizes the nature of this session, where buyers remain scarce and attention is focused on the trajectory of oil and its potential repercussions on the European macroeconomic dynamic.