The CAC 40 Index Opens 0.13% Higher

The CAC 40 traded flat around 8,331 on Tuesday, following losses in the previous session, as investors awaited progress in ceasefire talks between the US and Iran. Both sides are expected to send delegations to Islamabad for a second round of negotiations before the current truce expires later this week. However, President Trump said he is unlikely to extend the two-week ceasefire, adding that the Strait of Hormuz will remain blocked until a deal is finalized. Domestically, Finance Minister Roland Lescure said that France could face costs of up to €6 billion ($7.1 billion) from the Middle East war, while warning that the crisis remains highly uncertain in its trajectory, economic impact, and implications for public finances. Modest gains were recorded for TotalEnergies (0.1%), Schneider Electric (0.7%), and Air Liquide (0.3%). In contrast, Thales slipped 0.9% despite reporting stronger-than-expected sales and a 75% surge in defense orders, supported by sustained military spending.

The CAC 40 Index is up by 11 points or 0.13 percent on Tuesday. Top gainers are STMicroelectronics (2.13%), Stellantis NV (1.88%) and Airbus (0.85%). Biggest losses came from Safran (-1.72%), Thales (-1.41%) and Orange (-0.62%).

The CAC 40 lost 1.1% to close at 8,331 on Monday, reversing gains from the previous week and tracking declines across European markets as investors were unsettled by renewed tensions between the US and Iran. Over the weekend, Washington seized an Iranian cargo vessel that allegedly attempted to breach a blockade, while Tehran vowed to retaliate and also withdrew from a second round of ceasefire talks. These fresh developments have driven oil prices sharply higher, reigniting concerns over inflation and broader economic growth, as elevated energy costs continue to weigh on oil-importing European economies. Luxury heavyweights declined, particularly LVMH (-1.8%), Hermès (-2.6%), and Kering (-2.1%). Financial stocks also underperformed, including BNP Paribas (-1.8%), Crédit Agricole (-1%), and Société Générale (-2.6%). In contrast, TotalEnergies climbed 1.8% amid higher crude prices due to escalating geopolitical tensions in the Middle East.