CAC 40 Edges Lower Amid Middle East Tensions

The CAC 40 index fell 0.1% to close at 8,263 on Thursday, as investors monitored Middle East tensions. The US administration alternated between signaling progress toward a peace deal and warning Iran, while Pakistani officials visited Tehran to facilitate new US-Iran talks. The Strait of Hormuz remains largely closed, keeping oil prices elevated, though below recent peaks. Most luxury stocks posted losses amid persisting risk aversion, with L'Oreal down 2.3% and Kering down 3.1%. Meanwhile, Hermes gained 1.1% as the company reported a 6% rise in sales for the first quarter of 2026 yesterday. In the industrial sector, stocks declined, with Safran losing 3.4% and Thales down 0.7%. In contrast, TotalEnergies gained 0.6% on higher oil quotes.

The CAC 40 Index decreased -2 points or 0.02 percent on Thursday to close at 8273 points. The decline was led by Safran (-3.00%), ArcelorMittal (-2.37%) and Kering (-2.30%). On the upside, the strongest performers were TP (5.06%), Dassault Systemes (3.05%) and Bureau Veritas (2.64%).

The CAC 40 index rose 0.4% to around 8,300 on Thursday, reversing losses from the previous session as optimism over a potential resolution to the Middle East conflict lifted market sentiment. Reports suggest the US and Iran are considering extending their fragile ceasefire by two weeks to allow more time for negotiations, with the current truce set to expire next week, although shipping through the Strait of Hormuz remains suspended under a continued US naval blockade. Meanwhile, markets continued to digest corporate updates, with TotalEnergies signalling a strong first-quarter performance as higher energy prices and increased production outside the Middle East are expected to offset disruption from the conflict, though the energy giant still fell 0.8%. Among other notable performers, LVMH rose 1%, Airbus gained 1.1%, and Schneider Electric added 0.6%.