French stocks experienced a downturn on Wednesday, influenced by disappointing earnings and investor caution preceding the European Central Bank (ECB) policy meeting scheduled for Thursday. The ECB is anticipated to implement another interest rate reduction in response to recent data indicating ongoing weaknesses within the euro zone economy.
The CAC 40 index, a key benchmark, fell by 46 points, or 0.6 percent, settling at 7,476, following a 1.1 percent decline in the previous trading session.
LVMH shares dropped significantly, by 4 percent, as the company reported a surprising decline in sales of its fashion and leather goods division, marking the first such fall since 2020. Meanwhile, competitor Kering saw its shares decrease by 2.3 percent, and Hermes International experienced a 1.7 percent dip.
Rexel SA, a major distributor of electrical supplies, suffered a 4.6 percent plunge in its stock value after it revised its 2024 outlook downward in response to adverse trading conditions in Europe.
