CAC 40 Slides on Fed Watch and Narrow Budget Approval

The CAC 40 slipped 0.4% to around 8,020 on Wednesday, extending yesterday's modest decline as investors remained cautious ahead of the Federal Reserve’s rate announcement.

US policymakers are expected to deliver a third rate cut today, though the tone may stay hawkish.

In domestic politics, French lawmakers narrowly approved the 2026 social-security budget, giving Sébastien Lecornu’s minority government some relief.

Meanwhile, the Bank of France plans to slightly raise growth forecasts for 2025 and 2026, citing the economy’s resilience despite political uncertainty.

On the corporate front, luxury stocks dragged the index, with Hermès (-0.8%), Kering (-0.7%), and LVMH (-0.5%).

Other notable losers included Thales (-2.3%), Vinci (-2.1%), and Orange (-1.2%).

By contrast, Carrefour gained 0.5% after announcing a strategic partnership with JCDecaux, Carmila, and Unlimitail to expand digital advertising in shopping centres.

Other gainers included Société Générale (+0.9%), Eurofins (+0.5%).