FX.co ★ CAC 40 Retreats from 7-Month High as Bank Stocks Slide

The CAC 40 experienced a 1.0% decline on Friday, closing at approximately 8,100 points. This pullback came after achieving a seven-month peak of 8,189 in the previous trading session. The downturn was primarily influenced by significant sell-offs in banking stocks. Notably, Société Générale dropped by 4.4%, BNP Paribas by 3.4%, and Crédit Agricole by 2.4%. These declines arose from increasing apprehensions within the credit market, following revelations from two US regional banks regarding loan exposures linked to losses and potential fraud. Market sentiment was further strained by persistent tensions in US–China trade relations. In a more positive development, French Prime Minister Sébastien Lecornu successfully navigated two no-confidence votes on Thursday, providing his newly established government with a temporary reprieve before the pivotal 2026 budget discussions. In terms of individual stock performance, EssilorLuxottica saw a robust surge of 10.0% after announcing impressive third-quarter results, with revenues rising 11.7% year-on-year to reach €6.86 billion. This growth was propelled by strong market performance in North America and Europe, along with ongoing advances in its AI-enhanced eyewear division.