French Stocks Edge Higher

2026-03-04 08:49 By Czyrill Jean Coloma 1 min. read

The CAC 40 edged up 0.1% to 8,113 on Wednesday, attempting a modest rebound after sliding to a one-month low in the previous session, as investors paused to reassess risk amid escalating tensions in the Middle East.

US President Trump’s announcement that the Navy could escort oil tankers through the strategic Strait of Hormuz, where maritime traffic remains largely paralyzed, helped calm the fragile market.

Still, ECB Chief Economist Philip Lane warned that a prolonged conflict in the region could reignite inflationary pressures, primarily through higher energy prices.

While economists broadly expect the European Central Bank to keep interest rates on hold, traders are now pricing in roughly a 40% probability of another rate hike before year-end.

Meanwhile, market attention has turned to a set of PMI readings from Europe today.

Notable gainers included L'Oréal (1.2%), LVMH (0.5%), Engie (1.6%), Danone (2.1%), Dassault Aviation (1.4%), Veolia Environnement (1.1%), and Stellantis (2.1%).



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French Stocks Edge Higher
The CAC 40 edged up 0.1% to 8,113 on Wednesday, attempting a modest rebound after sliding to a one-month low in the previous session, as investors paused to reassess risk amid escalating tensions in the Middle East. US President Trump’s announcement that the Navy could escort oil tankers through the strategic Strait of Hormuz, where maritime traffic remains largely paralyzed, helped calm the fragile market. Still, ECB Chief Economist Philip Lane warned that a prolonged conflict in the region could reignite inflationary pressures, primarily through higher energy prices. While economists broadly expect the European Central Bank to keep interest rates on hold, traders are now pricing in roughly a 40% probability of another rate hike before year-end. Meanwhile, market attention has turned to a set of PMI readings from Europe today. Notable gainers included L'Oréal (1.2%), LVMH (0.5%), Engie (1.6%), Danone (2.1%), Dassault Aviation (1.4%), Veolia Environnement (1.1%), and Stellantis (2.1%).
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