The CAC 40 Index Closes 2.09% Higher

The CAC 40 Index went up by 167 points or 2.09 percent on Wednesday to close at 8149 points. The rise was led by STMicroelectronics (6.69%), ArcelorMittal (4.96%) and Societe Generale (4.56%).

The CAC 40 rose 1.8% to close at 8,125 on Wednesday as progress in US-Iran negotiations helped ease lingering inflation concerns and supported broader risk appetite. In the latest diplomatic effort, Pakistan’s interior minister arrived in Tehran, with Pakistan acting as a mediator after hosting peace talks last month. Oil prices retreated, although they remained close to $100 per barrel. The pullback in crude prices lifted financial stocks, with BNP Paribas gaining 2.1% and Société Générale surging 4.5%. Luxury shares also advanced as risk aversion eased, with LVMH rising 2.5% and Kering adding 3.1%. STMicroelectronics jumped 6.2% ahead of Nvidia’s earnings release later in the day, as investors looked for fresh signals on AI-driven demand and the outlook for the semiconductor sector. In industrials, Airbus gained 2.6% and Safran climbed 3.9%, while TotalEnergies slipped 0.2% on lower oil prices.

The CAC 40 traded near flatline around 7,981 on Wednesday after posting modest losses in the previous session, as investors remained cautious amid persistent uncertainty surrounding a potential US-Iran peace agreement. President Donald Trump warned that Washington could resume strikes on Iran within days if Tehran rejects US-backed peace terms. With the conflict showing little sign of easing and elevated oil prices fueling inflation concerns, Emmanuel Moulin, governor candidate for France’s central bank, said the European Central Bank must remain ready to tighten monetary policy if price pressures intensify, while also considering the impact on economic growth. On the corporate front, STMicroelectronics surged nearly 3% ahead of Nvidia’s earnings later in the day, as investors sought fresh cues on AI-driven momentum and global chip demand. Elsewhere, Stellantis NV advanced 0.7% after the automaker announced plans for a joint venture with Dongfeng Motor Corporation.