FX.co ★ CAC 40 Slides on France Politics and Trade Tensions

The Paris CAC 40 experienced a 1.0% decline, settling around 7,850 on Tuesday. This downturn offset the slight gains made in the previous session, influenced by ongoing political instability in France and escalating US-China tensions. French President Emmanuel Macron dismissed calls for his resignation and criticized his opponents, as his administration faces two critical no-confidence votes that could potentially dismantle it by the week's end. Investor anxiety was heightened further by trade tensions between the United States and China, with both nations set to impose new fees on shipping companies starting Tuesday. Among the day's significant losers, Michelin plunged 8.3% after revising its annual projections downward, now anticipating operating income between €2.6 and €3.0 billion, a decrease from the forecasted over €3.4 billion in light of a deteriorating economic landscape. Stellantis also saw a decline of 3.4% following Moody's decision to assign a "negative" outlook to its credit rating, while maintaining the Baa2 status. Other notable companies experiencing losses included Teleperformance, down by 2.7%, ArcelorMittal, which fell 2.0%, and Kering, declining by 1.4%.