The main Parisian index declines for the fourth consecutive session, hesitant to take risks after inflation figures in the United States, in addition to uncertainty in the Middle East.
The downward trend continues at the Paris Stock Exchange, experiencing a fourth consecutive session in the red. The main index, the CAC 40, falls by 0.95%, at 7,979.92 points at the close on Tuesday, May 12.
No positive news is coming to the rescue of the main Parisian index. Investors have taken note of the highly anticipated publication of data on prices in the United States.
Inflation in the United States has progressed more than expected, by 3.8% year-on-year in April, against a consensus of 3.7% and after 3.3% in March, according to the Consumer Price Index (CPI). This is its highest level since May 2023.
The core inflation, excluding energy and food prices, came out above expectations at 2.8% on an annual basis against +2.7% expected by the consensus and +2.6% in March.
“The core inflation is at its highest level since last September,” notes Bastien Drut, Strategy and Analysis Manager at CPRAM.
On a monthly basis, inflation, however, decelerated to 0.6% in April after +0.9% in March. The market is not concerned, seeing the effects of the conflict in the Middle East, which clearly impact energy prices.
“While oil prices refuse to retreat, investors were preparing for a solid new inflation publication and the April CPI confirmed these expectations. Even by excluding volatile costs of food and energy, the ‘core’ CPI also exceeded expectations, at 2.8%, reinforcing the idea that inflation remains stubborn in the background,” notes Bret Kenwell, U.S. market analyst for eToro.
“The rise in American inflation in March and April, since the beginning of the war in Iran, is explained for more than three quarters by the acceleration of energy prices. Therefore, in theory, this increase could be considered reversible,” adds Bastien Drut.
“However, it has been more than 5 years now that inflation has been above the Fed’s target, and we could imagine that there will be even more voices within the FOMC (Federal Open Market Committee) calling for the abandonment of the ‘accommodative bias’ and for more neutrality. Kevin Warsh will therefore take the helm of the institution in a delicate situation,” he notes.
Geopolitical deadlock
The latest developments on the conflict in the Middle East also urge caution. Hopes for a lasting peace agreement between the United States and Iran are diminishing day by day.
“Neither war nor peace seems to be the paradox in which the armed conflict between the United States and Iran finds itself. In fact, despite the fact that there have been no violent attacks from either side for more than a month, the discussions on a peace agreement are not really progressing. The proposals from each side are systematically rejected by the other,” describes LBP AM.
The diplomatic path seems obstructed, which keeps oil prices above $100. The July contract on North Sea Brent regains 3.1% to $107.48 per barrel, while the June contract on WTI in New York gains 3.35% to $101.36 per barrel.
From a company perspective, satellite operator SES advanced by 5.2% after disclosing first-quarter results exceeding expectations, supported by strong performance in aerial connectivity and European infrastructure. It pulls Eutelsat along, which gained 3.1%.
In the foreign exchange market, the euro weakened by 0.4% against the dollar to $1.1732.
Sabrina Sadgui – ©2026 BFM Bourse
