France: CAC 40 Near 3-Month Lows.

France's CAC 40 tumbled 1.5% to close at 8,046 on Thursday, a nearly three-month low as the escalation of military operations in the Middle East and the closure of the Strait of Hormuz triggered a broad retreat from European equities. Mounting geopolitical instability drove energy costs higher while fueling expectations that the European Central Bank will maintain restrictive rates to combat pro-inflationary pressures. Luxury leaders LVMH and Hermes dropped roughly 1% as the threat of 15% global US tariffs compounded concerns over weakening discretionary demand. Industrial firms Schneider Electric and Safran saw sharp declines exceeding 2% due to projected supply chain disruptions and rising input costs. Financials including BNP Paribas and Societe Generale fell over 2.6% as markets weighed the impact of heightened credit risks. In contrast STMicroelectronics and Pernod Ricard managed modest gains as selective buyers sought shelter in defensive and tech sectors.