CAC 40 Closes Higher on Hopes of Middle East Breakthrough

The CAC 40 rose 1.8% to close at 8,258 on Monday, reaching its highest level in more than two weeks as investors welcomed signs of a potential diplomatic breakthrough in the Middle East that could end the three-month conflict and reopen the Strait of Hormuz. The prospect of easing tensions triggered a sharp decline in oil prices and reduced concerns over energy-driven inflation. Luxury stocks led gains, with LVMH rising 1.3%, L'Oréal adding 1.9%, Hermès advancing 2.7%, and Kering climbing 2.3%. Financial shares also posted strong gains, including BNP Paribas (+3.1%), Crédit Agricole (+1.5%), and Société Générale (+4.8%). In contrast, TotalEnergies fell 1.5% as lower crude prices weighed on energy producers.

The CAC 40 climbed more than 1% to 8,206 on Monday, extending gains from the previous week and reaching its highest level in over two weeks as investors seized on signs of a potential diplomatic breakthrough in the Middle East to end the three-month conflict and reopen the Strait of Hormuz. The prospect of a resolution triggered a sharp sell-off in crude markets and the easing of deep-seated fears over energy-driven inflation. Gains were spearheaded by luxury heavyweights, particularly LVMH (0.9%), Hermes (1.5%), and Kering (0.9%). Financial stocks also showed strength, including BNP Paribas (1.8%), Credit Agricole (1.5%), and Societe Generale (2.3%). Conversely, energy major TotalEnergies tumbled 2.1% amid falling oil prices.

The CAC 40 Index rose 41 points or 0.51 percent on Friday to close at 8127 points. Leading the gains are STMicroelectronics (4.81%), ArcelorMittal (4.11%) and Stellantis NV (3.01%). Top losers were TotalEnergies SE (-2.37%), Danone (-1.59%) and Vinci (-1.14%).