CAC 40 Drifts Lower On Inflation, Rate Hike Concerns

(RTTNews) - French stocks fell on Wednesday, hurt by higher oil prices and rising bond yields amid persisting worries about the ongoing conflict in the Middle East. Additionally, recent data showing an acceleration in Eurozone inflation has raised possibilities of a rate hike by the European Central Bank.

Oil prices moved higher after the U.S. military hit targets in Iran and Tehran retaliated by firing missiles and drones at various sites across the region, heightening fears of supply disruptions and threatening commercial shipping through the Strait of Hormuz.

Brent crude prices rose toward to about $97 a barrel before dropping to around $95.

The benchmark CAC 40 was down 61.50 points or 0.74% at 8,240.35 a little over half an hour past noon.

Stellantis shed about 2.5%. Renault eased 2.4%, while Michelin and Societe Generale drifted lower by 2% from their previous closing levels.

Saint-Gobain, ArcelorMittal and Publicis Groupe lost 1.6%-1.7%. Capgemini, Veolia Environment, Kering, LVMH, Vinci, Airbus and Bouygues declined 1%-1.4%.

EssilorLuxottica, Euronext, Engie, Orange, AXA, Bureau Veritas, Thales, Safran, Danone, Schneider Electric and Credit Agricole also showed weakness.

STMicroelectronics, L'Oreal and Accor gained 1.2%, 1.1% and 1%, respectively. Carrefour moved up 0.6%.

In economic news, France's state budget deficit widened to EUR 145.9 billion in January-July 2026 from EUR 142 billion in the same period last year, as expenditure growth continued to outpace revenue growth. General budget revenues increased 4.2% year-on-year to EUR 201.2 billion, while expenditures rose 4.6% to EUR 284.2 billion.