2026.01.1209:08:34UTC+00CAC 40 Retreats Amid Fed Uncertainty and Sector Pressure

On Monday, the CAC 40 index experienced a decline of 0.5%, closing at 8,310, as concerns resurfaced regarding the Federal Reserve's autonomy. This decline comes after the index reached a record high last Friday. Fed Chair Jerome Powell revealed that the US central bank has been issued a grand jury subpoena by the Department of Justice, indicating a potential for legal proceedings. Banking shares took a hit following former President Trump's proposal for a one-year cap on credit card interest rates, with Société Générale dropping by 2.3%, BNP Paribas by 1.4%, and Crédit Agricole by 1.2%. Capgemini suffered a significant loss of 3.6%, as Morgan Stanley downgraded the stock to "Underweight" and reduced its price target from €145 to €142. Engie saw a slight decrease of 0.2%, as it began a share buyback initiative to reacquire up to 2.2 million shares starting January 12. On a positive note, Saint-Gobain advanced by 1.5%, with Thales, L’Oréal, and Eurofins Scientific SE also posting gains of 0.9%, 0.8%, and 0.7% respectively.