CAC 40 Down Sharply On Oil Surge, Weak Industrial Production Data

(RTTNews) - French stocks tumbled on Wednesday amid concerns about inflation and economic growth as oil prices continued to rise amid escalating tensions in the Middle East after U.S. forces destroyed five Iranian tankers and Tehran responded by launching missile strikes in Jordan.

Brent crude futures climbed to $100.49 a barrel, gaining about 2.6%. WTI crude oil futures rose to $95.09 a barrel, gaining about 2.3%.

Data showing an unexpected drop in French industrial production weighed as well.

The mood was cautious ahead of the European Central Bank's monetary policy announcement on Thursday. The central bank is widely expected to hike interest rate by 25 basis points.

The CAC 40 was down 132.57 points or 1.59% at 8,185.41 a little over half an hour past noon.

Capgemini, Saint Gobain, Schneider Electric, Legrand, Airbus and Michelin lost 2.6%-3%.

Kering, LVMH and Safran shed 2.3%-2.5%. BNP Paribas, STMicroelectronics, Thales, Accor and Danone drifted lower by 1.7%-2%.

Euronext, ArcelorMittal, Publicis Groupe, AXA, Credit Agricole, L'Oreal, Hermes International, EssilorLuxottica, Unibail Rodamco, Air Liquide, Carrefour, Vinci, Bouygues and Societe Generale also dropped notably lower.

TotalEnergies moved up by about 1.1%. Dassault Systemes and Engie gained 1% and 0.8%, respectively. Eurofins Scientific and Bureau Veritas posted modest gains.

Data released by the statistical office INSEE showed France's industrial production decreased unexpectedly in July, dropping 0.4%, against expectations for an increase of 0.2%. Industrial production dropped 0.1% in June.

With total production, manufacturing output fell 0.8% but slower than the 1% decline registered in June. Output declined in almost all major branches of the manufacturing industry, except in coke and refined petroleum products.

In the three months to July, cumulative industrial output rose 0.8% from the same period last year. However, production fell by 0.4% in the manufacturing industry.