CAC 40 Rises on Hopes for US-Iran Diplomacy

The CAC 40 gained 1.1% to close at 8,328 on Tuesday, the highest level since early March, supported by reports that US-Iran talks could resume this week. Oil prices fell on hopes for an end to conflict-driven supply shortages, easing stagflation and interest rate hike fears. Most luxury brands posted gains as risk aversion declined, with L'Oreal up 1.1%, Hermes gaining 1.2%, and Kering advancing 2.9%. The industrial sector also traded positive, with Airbus gaining 1.3% and Safran advancing 2.3%. TotalEnergies lost 2.8% on falling oil prices. LVMH closed around the flatline after posting a decline in Q1 revenue and warning that the Iran conflict reduced group sales by at least 1% in the latest quarter, citing weaker demand in the Gulf.

The CAC 40 Index gained 92 points or 1.12 percent on Tuesday to close at 8328 points. Gains were led by TP (5.60%), Eurofins Scientific SE (5.27%) and Essilor (3.76%).

The CAC 40 rose 0.6% to 8,281 on Tuesday, rebounding from losses in the previous session as market sentiment improved on renewed diplomatic signals between the US and Iran. President Donald Trump indicated that Tehran had expressed interest in pursuing a potential agreement, while Iranian President Masoud Pezeshkian signaled a willingness to engage in talks, provided they align with international law. However, uncertainties linger as the US has begun blockading vessels departing Iranian ports. Investor focus is also shifting toward the earnings season, with key results expected from Kering and Publicis today. Notable gains were recorded in Schneider Electric (0.9%), Airbus (0.7%), and BNP Paribas (0.9%). In contrast, LVMH lost 2.4% after posting a 6% annual decline in Q1 revenue and warning that the Iran conflict reduced group sales by at least 1% in the latest quarter, citing weaker demand in the Gulf.