The CAC 40 Index Closes 0.60% Lower

The CAC 40 Index rose 38 points or 0.46 percent on Friday to close at 8227 points. Leading the gains are TP (4.53%), Societe Generale (2.27%) and Kering (2.03%). Top losers were Air Liquide (-2.15%), Stellantis NV (-2.08%) and Sanofi (-1.61%).

The CAC 40 closed nearly flat at 8,183 on Friday as investors weighed domestic economic data and prospects for peace in the Middle East. France’s economy contracted 0.1% quarter-on-quarter in Q1 2026, reversing a 0.2% expansion in the previous quarter and marking the first contraction since Q2 2020. Preliminary data also showed annual inflation accelerated to 2.4% in May from 2.2% in April, the highest level since February 2024, largely driven by higher energy prices amid ongoing Middle East tensions. Meanwhile, markets assessed the likelihood of an extension to the US-Iran ceasefire after reports that both sides had agreed to a framework deal pending approval from US President Donald Trump. Luxury stocks weighed on the index, with LVMH down 1.6% and L'Oréal losing 1%, while industrials advanced, with Airbus up 1.1% and Safran gaining 0.9%.

The CAC 40 rose 0.5% to 8,233 on Friday and was heading for a second consecutive monthly gain, supported by optimism over an extended ceasefire agreement between the US and Iran. Both countries had agreed to prolong the truce by 60 days to allow for formal negotiations and further discussions on Iran’s nuclear program, although US President Donald Trump has yet to formally approve the deal. On the economic front, France's economy contracted by 0.1% quarter-on-quarter in Q1 2026, reversing a 0.2% expansion in the previous quarter and marking the first contraction since Q2 2020. Preliminary data also showed annual inflation edged up to 2.4% in May from 2.2% in April, the highest since February 2024, driven largely by higher energy prices amid ongoing tensions in the Middle East. Financial stocks were among the top performers, including BNP Paribas (0.7%), Crédit Agricole (1.1%), and Société Générale (1.5%). Other gainers included LVMH (0.7%), Airbus (1.4%), and Stellantis (1.8%).