French stocks experienced a notable decline on Tuesday, influenced by ongoing concerns in the Middle East and diminished expectations for interest-rate reductions by the Federal Reserve.
In parallel, France reported an increase in its trade deficit for August compared to the previous year, according to data released by the customs office. The deficit reached EUR 7.4 billion in August, up from EUR 6.0 billion in July, surpassing the anticipated EUR 5.5 billion. In August of the previous year, the trade deficit stood at EUR 8.1 billion.
Additional figures from the Bank of France revealed a current account balance deficit of EUR 0.6 billion for August, a shift from a balanced account in July.
The deficit in goods trade expanded to EUR 6.0 billion, while the surplus in services trade saw an increase of EUR 5.3 billion.
The CAC 40 index dropped 86 points, or 1.1 percent, settling at 7,490, following a half-percent rise the day before.
TotalEnergies SE, a prominent energy company, saw a decrease of about 1 percent. The firm announced an agreement with Saint-Gobain to provide 875 GWh of renewable electricity to Saint-Gobain's French sites starting in January 2026, spanning five years.
Luxury brands with ties to China, including Kering, LVMH, and Hermes International, saw declines ranging from 3 to 7 percent after China's state planner released no new significant stimulus plans.
In the spirits sector, Remy Cointreau dropped 9.3 percent, and Pernod Ricard fell 4.3 percent. This followed China’s imposition of temporary anti-dumping measures on brandy imports from the European Union.