The CAC 40 fell 0.7% to close at 8,341 on Tuesday, extending losses for a third straight session as investors reassessed the outlook for global monetary policy. Markets increasingly expect the US Federal Reserve to deliver a total of 50 basis points in rate hikes by year-end to contain inflationary pressures. In Europe, traders also continued to price in an additional 25 basis-point increase from the European Central Bank later this year, despite Christine Lagarde recently downplaying concerns over second-round inflation effects. Financial stocks traded lower, with Societe Generale down 1.5%. Luxury stocks were mixed as risk aversion increased, with L'Oreal down 0.3%, Hermes losing 1%, and Kering falling 0.9%, while LVMH rose 0.6%. STMicroelectronics plunged 8.1%, tracking Wall Street as technology stocks came under pressure amid concerns that AI-driven valuations have become overstretched. Industrials were mixed, with Schneider Electric down 4%, while Airbus gained 2.2%.