French stocks are on course to deliver their weakest annual performance since the depths of the Eurozone crisis, as investor worries over tariffs and political turmoil combine with lacklustre demand for luxury goods.
Paris’s Cac 40 index has fallen 3 per cent this year, compared with a 6 per cent gain for the region-wide Stoxx Europe 600, after a strong start to the year driven by bumper sales for companies such as LVMH melted away.
Investors have been put off by political crisis, sluggish demand from the key export market of China and a weakening domestic economy. The prospect of a trade war after US president-elect Donald Trump threatened sweeping tariffs on goods has added to the malaise.
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