France: CAC 40 Posts Weekly Losses.

The CAC 40 closed 0.7% lower at 8,259 on Friday, extending its retreat from record highs earlier in the week and posting a weekly drop of 1.3% after losses in heavyweight luxury and consumer stocks amid lingering concerns around French budget negotiations. The decline was led by LVMH (-2.6%), Kering (-4.2%), Hermes (-2.1%) and Essilor (-3.9%), pointing to profit-taking and renewed wariness toward discretionary demand, while Sanofi (-1%) and Air Liquide (-1%) also weighed on the index. Financials added to the pressure, with BNP Paribas (-0.2%), Credit Agricole (-0.5%) and Societe Generale (-0.9%) lower. In contrast, aerospace and defense stocks provided partial support, as Thales (+2.3%), Airbus (+0.8%) and Safran edged higher. Political uncertainty remained at the forefront after the government postponed parliamentary talks on the 2026 budget, prolonging fiscal concerns and reinforcing the cautious tone following the market’s recent peak.