Paris stocks slide 1.03% amid Middle East tensions, luxury firms hit hard

The Paris Stock Exchange experienced a downturn, with its main index, the CAC-40, closing down 1.03% at 8,173.11 points. This decline was attributed to a resurgence of tensions in the Middle East, fueled by renewed U.S. bombings in Iran, which cast doubt on any immediate resolution to the conflict.

Despite the day's losses, the French market retains a weekly gain of 2.37% and a monthly increase of 0.35%. However, over the past three months, the index shows a significant net loss of 5.22%, reflecting the broader impact of the conflict involving the United States, Israel, and Iran.

On the individual stock front, semiconductor manufacturer STMicroelectronics was a notable gainer, rising 3.14% amid a positive trend in the sector. Automaker Stellantis saw a 1.09% increase, and energy giant TotalEnergies benefited from rising crude oil prices, gaining 0.71%. Other companies like Engie and Crédit Agricole also recorded gains.

Conversely, luxury goods firms Hermès and Kering suffered the most significant losses, falling 3.27% and 3.05%, respectively. LVMH also declined by 1.82%. These companies are particularly sensitive to a general decline in consumer spending expectations. Other notable decliners included construction firm Eiffage, laboratory Eurofins, and advertising group Publicis.