CAC 40 Ends Near Flat as Inflation Offsets Ceasefire Hopes

2026-05-29 16:04 By Isabela Couto 1 min. read

The CAC 40 closed nearly flat at 8,183 on Friday as investors weighed domestic economic data and prospects for peace in the Middle East.

France’s economy contracted 0.1% quarter-on-quarter in Q1 2026, reversing a 0.2% expansion in the previous quarter and marking the first contraction since Q2 2020.

Preliminary data also showed annual inflation accelerated to 2.4% in May from 2.2% in April, the highest level since February 2024, largely driven by higher energy prices amid ongoing Middle East tensions.

Meanwhile, markets assessed the likelihood of an extension to the US-Iran ceasefire after reports that both sides had agreed to a framework deal pending approval from US President Donald Trump.

Luxury stocks weighed on the index, with LVMH down 1.6% and L'Oréal losing 1%, while industrials advanced, with Airbus up 1.1% and Safran gaining 0.9%.



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2026-05-29
CAC 40 Ends Near Flat as Inflation Offsets Ceasefire Hopes
The CAC 40 closed nearly flat at 8,183 on Friday as investors weighed domestic economic data and prospects for peace in the Middle East. France’s economy contracted 0.1% quarter-on-quarter in Q1 2026, reversing a 0.2% expansion in the previous quarter and marking the first contraction since Q2 2020. Preliminary data also showed annual inflation accelerated to 2.4% in May from 2.2% in April, the highest level since February 2024, largely driven by higher energy prices amid ongoing Middle East tensions. Meanwhile, markets assessed the likelihood of an extension to the US-Iran ceasefire after reports that both sides had agreed to a framework deal pending approval from US President Donald Trump. Luxury stocks weighed on the index, with LVMH down 1.6% and L'Oréal losing 1%, while industrials advanced, with Airbus up 1.1% and Safran gaining 0.9%.
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