The CAC 40 Index Closes 1.35% Higher

The CAC 40 rose 0.5% to close at 8,115 on Thursday after the European Central Bank held rates at 2% for a third straight meeting, in line with expectations. Policymakers flagged uncertainty around the Iran conflict, particularly elevated energy prices, and signaled a wait-and-see stance on whether cost pressures will broaden. Oil prices, however, retreated after briefly topping $126 per barrel earlier in the session. Luxury stocks advanced, with LVMH up 0.7% and Hermès gaining 1%. Industrials also rose, as Safran and Thales added 1.6%. TotalEnergies gained 1.3%, supported by still-high oil prices despite the easing from earlier peaks. Elsewhere, Stellantis tumbled 6.4% after weak revenue. On the data front, the economy stalled in Q1 2026, while annual inflation rose to a near two-year high of 2.2% in April.

The CAC 40 Index rose 37 points or 0.46 percent on Thursday to close at 8109 points. Leading the gains are STMicroelectronics (5.34%), Veolia (3.25%) and TP (2.94%). Top losers were Stellantis NV (-6.54%), Societe Generale (-3.80%) and Credit Agricole (-3.66%).

The CAC 40 dropped 1.1 to 7,983 on Thursday, marking its fifth consecutive session of losses as oil prices surged on renewed Middle East tensions while investors awaited monetary policy decision from the ECB. US President Trump is expected to receive a military briefing on potential Middle East action, raising concerns over energy supply. Meanwhile, the European Central Bank is set to hold rates steady later today, though markets still price in hikes from June. Domestically, the economy stalled in Q1 2026, marking its weakest performance in over a year. Meanwhile, annual inflation accelerated to a near two-year high of 2.2% in April, driven largely by rising energy costs. Financial stocks led the declines, particularly BNP Paribas (-3.7%), Societe Generale (-3.4%), and Credit Agricole (-5.7%), following weak Q1 results. Elsewhere, Stellantis tumbled 8.9%, even as it returned to profit in the Q1. Despite the recent pullback, the CAC 40 remains on track to post a monthly gain.