CAC 40 Falters Amid US-Iran Tensions and Inflation Fears

The Paris Benchmark CAC 40 index closed Tuesday's session at 8,714.94 points, down 11.09 points or 0.13%, as traders took a cautious stance ahead of a week dominated by geopolitical risk and the closely watched US inflation report.

The index drifted within a narrow range for much of the session before briefly testing levels above 8,749 in the afternoon, only to fade into the close as sentiment turned more defensive across European equity desks.

The pullback reflected profit-taking and risk management rather than a shift in positioning, with trading volumes broadly in line with recent averages.

The principal catalyst for Tuesday's weakness was the renewed hardening of rhetoric between the US and Iran, with Iranian Foreign Minister Abbas Araghchi stating there was 'no possibility of restarting negotiations' under current conditions.