CAC 40 Falls as ECB Holds Rates, STMicro Slides

Paris’ CAC 40 reversed early gains to close 0.5% lower at 7,813 on Thursday, as investors scaled back expectations for further ECB rate cuts.

The European Central Bank left rates unchanged, as policymakers maintained a wait-and-see stance amid trade uncertainty and inflation reaching the 2% target, while President Lagarde stated the ECB is “in a good place.” Markets also kept a close eye on ongoing tariff negotiations between Washington and Brussels, with reports suggesting a deal is near that would impose 15% tariffs on select European imports while removing others.

In corporate news, STMicroelectronics plunged nearly 30% after missing Q2 earnings estimates and reporting an operating loss tied to restructuring charges.

On the upside, BNP Paribas rose 0.3% after beating forecasts on both revenue and profit.