CAC 40 slides as French debt tensions hit banks and insurers

The CAC 40 index has fallen sharply after failing to hold above the 8,000-point level, with key technical support levels now under threat amid growing tensions over French debt. The risk of a more pronounced decline is increasing. The index had shown signs of stabilization since mid-September, but failed to break through resistance around 8,200 points. French inflation accelerated, and the spread between French and German government bond yields has widened to levels not seen since the eurozone sovereign debt crisis of the early 2010s. Banking stocks like Société Générale and BNP Paribas, along with insurer AXA, are directly exposed to falling French bond prices. Potential tax increases in the 2027 budget are also pressuring French-exposed companies. A break below the long-term ascending wedge support could target last year's lows under 7,000 points.