Paris Market Close: CAC 40 Starts the Week in the Red as Trade Tensions Loom (August 2025)

• What Drove the CAC 40’s Decline?
• Which Stocks Were the Biggest Winners?
• Which Stocks Took the Biggest Hits?
• How Did Currencies and Commodities Perform?
• What’s Next for Markets?
• FAQ

The Paris stock exchange kicked off the week on a sour note, with the CAC 40 slipping 0.57% to 7,699 points. Investors remained cautious amid ongoing U.S.-China trade negotiations and geopolitical tensions, particularly around Ukraine. Defense stocks took a hit, while mining and tech sectors saw gains. The euro hovered around 1.16 against the dollar, and bitcoin surged to $120,000. Here’s a deep dive into the day’s market movements and what drove them.

What Drove the CAC 40’s Decline?

The CAC 40 opened slightly higher but quickly reversed course, ending the day down 0.57%. Market sentiment was weighed down by uncertainty over U.S.-China trade talks, with a key tariff deadline expiring on Tuesday. Analysts, including the BTCC team, noted that traders are pricing in a likely 90-day extension to negotiations. Meanwhile, defense stocks like Thales and Dassault Aviation dipped on hopes of a Ukraine ceasefire, as Donald TRUMP and Vladimir Putin prepare for a high-stakes meeting in Alaska.

Which Stocks Were the Biggest Winners?

Mining giant Eramet led the gainers, climbing 5% for its sixth consecutive session of growth. The rally was fueled by a spike in lithium prices after a major Chinese battery producer halted operations at a key mine. Other notable risers included:

• MdM: +10%
• Clariane: +4%
• Technip Energies: +1.4% (boosted by a new €1B contract)

Jefferies raised its price target for Technip Energies to €50, citing strong growth prospects.

Which Stocks Took the Biggest Hits?

Biopharma firm Poxel plummeted 18% after confirming it had entered bankruptcy proceedings. Other decliners included:

• Lumibird: -5.8%
• Hermès: -3.6% (after RBC Capital cut its price target)
• Worldline: -3.5%

Defense stocks also struggled, with Exail Technologies dropping 3.7% amid ceasefire hopes in Ukraine.

How Did Currencies and Commodities Perform?

The euro held steady at 1.16 against the dollar, while Brent crude oil traded NEAR $66 per barrel. Bitcoin, however, stole the spotlight, surging to $120,000—a rally attributed to institutional interest and tightening supply. "Crypto markets are heating up again," noted a BTCC analyst. "Bitcoin’s scarcity narrative is back in play."

What’s Next for Markets?

With few corporate earnings reports this week, traders are laser-focused on geopolitical developments. The Trump-Putin meeting could either ease tensions or reignite them, depending on the outcome. Meanwhile, the U.S.-China trade deadline looms large. "Markets hate uncertainty," quipped one trader. "But hey, at least we’re not bored."

FAQ

Why did the CAC 40 drop today?

The CAC 40 fell 0.57% due to caution around U.S.-China trade talks and defense sector weakness amid Ukraine ceasefire hopes.

Which stocks performed well?

Eramet (+5%), MdM (+10%), and Technip Energies (+1.4%) were top gainers, driven by lithium prices and new contracts.

What’s the outlook for Bitcoin?

Bitcoin hit $120,000 amid institutional demand and supply constraints, per CoinMarketCap data.