FX.co ★ CAC 40 Edges Lower as Investors Eye Fed

The CAC 40 index saw a decline of 0.3%, settling at approximately 8,080 points on Monday, as it continued the minor downturn observed last Friday. Investors remain vigilant ahead of the Federal Reserve's policy announcement scheduled for Wednesday. Although a third interest rate reduction is anticipated, there remains uncertainty regarding the economic outlook for 2026. Concurrently, focus has shifted towards the European Central Bank (ECB), following remarks by official Isabel Schnabel, who expressed confidence in market speculation concerning a potential future rate hike by the central bank.

In the stock market, L’Oréal experienced a decline of 1.6% despite enhancing its collaboration with Swiss dermatology firm Galderma, increasing its stake by 10%, thus holding a total of 20% ownership. Other consumer sector stocks witnessed a downturn, including Hermès with a drop of 1.7%, LVMH down by 1.1%, Kering decreasing by 0.6%, Pernod Ricard falling by 1.2%, and Essilor edging lower by 0.3%. Conversely, the aerospace sector showed gains, spearheaded by Thales, which rose by 1.2%, Safran increasing by 0.8%, and Airbus up by 0.3%. The industrial sector also saw positive movements, with Legrand advancing by 0.7% and Vinci marking a 0.6% increase.