CAC 40 Down Nearly 1% On Growth Concerns

(RTTNews) - French stocks are drifting lower on Thursday amid rising concerns over a deteriorating U.S. fiscal outlook, a lack of clarity on tariff negotiations. Data showing a notable drop in France's manufacturing sentiment index is also weighing on stocks.

U.S. President Donald Trump's One Big Beautiful Bill Act, which will transform taxes and other federal policies, is amplifying debt and deficit concerns.

It is feared that the mega-bill pairing tax relief with spending cuts would lead to an increase in the U.S. debt and further slow U.S. economic growth.

The benchmark CAC was down 72.80 points or 0.91% 40 7,837.69 a few minutes ago.

Stellantis, Saint Gobain, ArcelorMittal and Hermes International are all down more than 3%. Capgemini, Renault, L'Oreal, Accor and LVMH are down 2 to 2.8%.

STMicroElectronics is declining nearly 2%, while Kering, Pernod Ricard, Societe Generale, Publicis Groupe, TotalEnergies and Veolia Environment are down 1 to 1.7%.

Thales is up nearly 1%, while Safran, Essilor, Engie, Orange and Carrefour are up marginally.

Survey data from the statistical office INSEE showed France's manufacturing confidence weakened in May on deteriorating global orders and personal production expectations.

The manufacturing sentiment index dropped to 97 in May from 100 in April. The score was forecast to improve to 99.

The personal production outlook plunged to -1 from +12 in April. Meanwhile, general production outlook rose moderately to -13 from -15.

The survey showed that economic uncertainty felt by business leaders increased again. The indicator posted 32, up from 29 in the prior month.

The overall business confidence index, which comprises the responses of business leaders from sectors such as manufacturing, construction, services, retail trade, and wholesale trade, dropped in May. The index fell marginally to 96 from 97 in April.

The HCOB Composite PMI for France came in at 48.0 for May, up from 47.8 in April, flash data showed. The Manufacturing PMI came in at 49.7, compared to 48.7 a month earlier, while the Services PMI came in with a score of 47.4, compared to 47.3 in April.

Flash data showed the Eurozone HCOB Composite PMI dropped to 49.5 in May, from 50.4 in April. The Manufacturing PMI improved to 49.4 from 49.0, while the Services PMI dropped to 48.9 from 50.1.