The CAC 40 fell 0.8% to close at 7,704 on Friday, reversing modest gains from the previous session and leaving the Paris exchange down 0.8% for the month, as hopes of higher global liquidity were tempered by stronger US personal income and spending data alongside an acceleration in the Fed’s preferred inflation gauge, which reduced expectations for the scale of upcoming rate cuts. In Europe, investors weighed the global rate outlook and the ECB’s response amid persistent growth concerns. EU-harmonized inflation came in slightly below expectations in France and Italy, while meeting forecasts in Spain. Rate futures showed most of the market no longer expects further ECB cuts this year, though weak growth and looming US tariffs kept some bets on a possible fourth-quarter move. Pernod Ricard (-3.2%), STMicroelectronics (-2.3%), Capgemini (-2.1%), Teleperformance (-2.0%), and LVMH (-1.8%) were among the top decliners.