France: CAC 40 Falls as Fiscal Concerns Persist.

The CAC 40 fell 0.3% to close at 8,020 on Tuesday, reversing the previous session’s gains as concerns over France’s deteriorating fiscal outlook weighed on markets. French equities remained under pressure after Fitch unexpectedly revised the country’s outlook to negative, citing deteriorating public finances, elevated government debt and borrowing costs, sluggish economic growth and political uncertainty. The budget deficit widened to €159.2 billion in January-September 2026, from €155.4 billion a year earlier. Airbus fell 1.4%, Safran lost 1.1%, while EssilorLuxottica and Vinci each shed 1.4%. In the luxury sector, Hermes lost 0.6% and L’Oreal declined 0.9%. In contrast, LVMH rose 2% on the session, although its shares remained down around 40% year-to-date amid slowing Chinese demand. In the energy sector, TotalEnergies lost 1.1% as oil prices extended the previous session’s plunge after US President Trump announced the US would end its financial support for Israel by year-end.