The CAC 40 Index Closes 0.43% Higher

The CAC 40 Index gained 35 points or 0.43 percent on Wednesday to close at 8208 points. Gains were led by Stellantis NV (4.46%), L'Oréal (4.43%) and Renault (4.12%). Biggest losers were STMicroelectronics (-4.28%), TP (-3.74%) and Capgemini (-3.50%).

The CAC 40 rose 0.4% to close at 8,208 on Wednesday, rebounding from the previous session as investors grew cautiously optimistic that the US and Iran could still secure a diplomatic agreement. An unofficial draft of a US-Iran interim peace deal stated that maritime traffic through the Strait of Hormuz could return to normal within a month after the agreement is finalized, although it remains unclear whether the US has accepted the terms. Meanwhile, François Villeroy de Galhau said the ECB “will do what is necessary” to bring inflation back to its 2% target as the Middle East conflict clouded the economic outlook. Luxury stocks led gains, with LVMH rising 3.1%, L'Oréal gaining 4.6%, Hermès adding 2.3%, and Kering advancing 4.4%. Automakers also moved higher, with Stellantis up 3.8% and Renault gaining 4.3% after peer Volvo Cars received approval from US authorities to continue operating in the US market. TotalEnergies fell 3.6% as oil prices declined.

The CAC 40 rose 0.5% to 8,211 on Wednesday, rebounding from the previous session as investors remained optimistic that the US and Iran could still secure a diplomatic agreement despite renewed tensions in the Middle East. US Secretary of State Marco Rubio said a possible deal to end the conflict could be reached within days, although disagreements over Tehran’s frozen assets and access through the Strait of Hormuz remained unresolved. Meanwhile, François Villeroy de Galhau, Governor of the Bank of France, emphasized that the European Central Bank “will do what is necessary” to return inflation to its 2% target as the ongoing conflict continued to cloud the economic outlook. Luxury stocks led gains, particularly LVMH (1.5%), Hermès (1.5%), and Kering (2.6%). In addition, auto stocks such as Stellantis (2.3%) and Renault (2.9%) posted solid increases after peer Volvo Cars obtained approval from the US to continue operating in the US market.