The CAC 40 Index Closes 4.49% Higher

The CAC 40 Index went up by 355 points or 4.49 percent on Wednesday to close at 8264 points. The rise was led by ArcelorMittal (12.84%), Safran (10.90%) and Schneider Electric (9.50%).

The CAC 40 surged 4.5% to close at 8,264 on Wednesday as French equities reached their highest level in over a month following a significant de-escalation in Middle East tensions. This massive rally was triggered by the announcement of a two-week conditional ceasefire between the United States and Iran which eased global fears of a systemic energy shock and an inflationary spike. Luxury conglomerates led the upward charge with LVMH and Hermes surging 6.9% and 7.3%, respectively, while Kering advanced 7.6% as the improved geopolitical outlook bolstered global consumer sentiment. Financial institutions also saw sharp gains with Société Générale soaring 9.3% and BNP Paribas climbing 7.5% as receding regional risks supported the broader banking sector. Aerospace leaders Safran and Airbus jumped 10.6% and 7.8% respectively while ArcelorMittal led industrial performers with a 12.8% surge. These gains more than offset a 3.1% decline for TotalEnergies as WTI crude prices plunged.

The CAC 40 climbed 4.3% to 8,247 on Wednesday, rebounding from losses in the previous session and reaching its highest level in over a month, primarily driven by a wave of optimism following a ceasefire breakthrough in the Middle East conflict. The US and Iran had agreed to a two-week ceasefire, averting what Trump had previously warned could escalate into catastrophic military action in the region. Additionally, Iranian Foreign Minister Seyed Abbas Araghchi confirmed that access to the Strait of Hormuz would be granted in coordination with Iran’s Armed Forces. Domestically, the trade deficit widened significantly to €5.8 billion in February 2026, as exports fell by 0.9% month-on-month to €51.0 billion, while imports jumped 5% to €58.5 billion. Luxury stocks were among the best performers, with shares in LVMH, Hermes, and Kering surging 6.2% to 6.6%. Financial stocks also posted strong gains, with BNP Paribas, Credit Agricole, and Société Générale soaring between 5.4% and 8.5%.