CAC 40 Tumbles Amid Middle East Tensions

(RTTNews) - French stocks traded sharply lower on Monday amid fears of a possible U.S. recession and concerns over an escalating Middle East conflict, with reports suggesting the Benjamin Netanyahu-led government could sanction a pre-emptive strike on Iran to prevent an attack on Israeli soil.

Meanwhile, investors ignored the results of a survey showing that France's services sector activity picked up in July to end two consecutive months of contraction. The benchmark CAC 40 was down 137 points, or 1.9 percent, at 7,115 after falling 1.6 percent on Friday.

Lender Societe Generale tumbled nearly 4 percent after it signed an agreement to divest its Swiss and British private banking divisions, including SG Kleinwort Hambros.

Peer BNP Paribas declined 2.2 percent and Credit Agricole gave up 2.8 percent.

L'Oreal edged down slightly. The cosmetics and beauty products giant has announced the acquisition of a 10 percent stake in dermatology company Galderma Group AG for a non-disclosed amount.