CAC 40 Modestly Lower As Middle East Concerns Weigh

(RTTNews) - French stocks drifted lower on Wednesday, weighed down by uncertainty about U.S.-Iran ceasefire following Iran launching ballistic missiles in the Gulf region and U.S. retaliating by striking Qeshm Island.

The Qeshm Island, which directly blocks the entrance to the Strait of Hormuz, is also the base of the IRGC's network of underground facilities and defensive positions across the island.

Worries about inflation following the sharp rise in oil prices contributed as well to market's weakness. Investors also digested regional PMI data.

Brent crude futures climbed to $98.99 a barrel, gaining about 3%.

The benchmark CAC 40, which fell to 8,161.84, was down 25.36 points or 0.31% at 8,183.73 nearly half an hour past noon.

Stellantis shed about 3.4%. Capgemini, Kering, Renault, Dassault Systemes, Airbus, Renault, Safran and LVMH lost 1.6%-2%.

BNP Paribas, AXA, Schneider Electric, Legrand, Hermes International and Bureau Veritas drifted down by 1%-1.4%. Socitete Generale and Unibail Rodamco also were notably lower.

Air Liquide climbed 2.15% and Veolia Environment gained nearly 2%. Engie, TotalEnergies, Danone, STMicroelectronics and Orange also moved notably higher.

Final survey data from S&P Global showed the euro area private sector logged back-to-back contractions in May, marking its biggest fall in 18 months.

The final composite output index dropped to 48.5 in May from 48.8 in April. However, the score was above the flash estimate of 47.5.

Overall activity levels in the private sector were pulled lower by services, as manufacturing production rose further. The services Purchasing Managers' Index posted 47.7, slightly up from 47.6 a month ago. The flash reading was 46.4.

France's private sector logged its steepest fall since January 2024. The final composite PMI fell to a 28-month low of 44.9 from 47.6 in the previous month but remained above the initial score of 43.5. The services PMI fell to 44.3 in May from 46.5 in April. The headline measure posted its lowest reading in five-and-a-half years. The flash services PMI score was 42.9.