French Stocks Fall to 6-Month Low as Financials and Materials Drag CAC 40 Down 1.62%

France's benchmark CAC 40 index fell 1.62% on Thursday to close at a new six-month low, pressured by a broad-based sell-off that saw investor sentiment turn negative. The wider SBF 120 index also concluded the session lower, dropping 1.66%, according to closing data from the Paris Stock Exchange.

Sector and Stock Performance

The downturn was driven by significant weakness in several key sectors, including Basic Materials, Financials, and Consumer Goods. Among the index's worst-performing constituents was banking group Societe Generale SA, which saw its shares plunge 5.00%.

Other notable decliners on the CAC 40 included:

• Steel and mining company ArcelorMittal SA, which fell 4.41%.
• Hospitality group Accor SA, whose shares decreased by 4.01%.

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In a stark contrast to the market trend, IT services and consulting firm Capgemini SE was the session's top performer, with its stock surging 7.38%. Minor gains were also posted by Publicis Groupe SA (+0.87%) and Orange SA (+0.80%).

Market Breadth and Volatility

The negative sentiment was widespread across the Paris market, with falling stocks outnumbering advancing ones by a margin of 364 to 130, while 72 issues ended unchanged. The sell-off also pushed shares of real estate developer Nexity down 6.69% to a new all-time low.

Reflecting heightened investor concern, the CAC 40 VIX, a measure of the market's implied volatility, closed at a new 52-week high of 18.96, despite being unchanged for the day's session. The move in French equities came as the US Dollar Index Futures rose 0.65%, while key commodity prices, including crude oil, also advanced.