FX.co ★ CAC 40 Slides Amid Trade Tensions Over French Wine

The CAC 40 index dropped by 1.0% to around 8,030 points on Tuesday, extending the decline seen in the previous session, amid investor concerns over rising tensions in Greenland. Donald Trump intensified pressure on French President Emmanuel Macron to participate in his "Board of Peace" initiative by threatening a 200% tariff on French wine and champagne. As a result, LVMH shares declined by 1.8%, while Pernod Ricard displayed slight resilience, edging up by 0.4%. Luxury stocks broadly underperformed, with Kering experiencing the steepest decline, down 2.8%, and Hermès losing 1.5%. Additional noteworthy declines were observed in Legrand (-1.7%), Schneider Electric (-1.6%), Edenred (-1.3%), and Airbus (-1.2%). In contrast, Renault's stock climbed 2% following its optimistic forecast of selling 2.34 million vehicles globally by 2025, reflecting a 3.2% increase and surpassing the projected market growth rate of 1.6%, with all three of its brands outperforming the market.