The CAC 40 Index Closes 0.05% Higher

The CAC 40 edged up to close at 8,203 on Tuesday on fragile hopes of easing tensions in the Middle East. The White House suggested that a deal to end the more than three-month-old conflict with Iran could be reached within days, improving risk sentiment. Oil prices and bond yields declined, easing concerns about inflation and higher interest rates. However, the situation remained fragile, with the Strait of Hormuz effectively closed and Israel continuing strikes in Lebanon. In Europe, attention also turned to the ECB’s policy meeting on Thursday. While a quarter-point rate hike is expected, markets are focused on signals regarding the policy outlook as elevated energy prices continue to pose inflation risks. Luxury stocks rose, with LVMH rising 2%, L'Oréal adding 1.6%, and Hermès gaining 1.3%, while AXA added 1.2%. In contrast, TotalEnergies fell 1.1% as oil prices fell. STMicroelectronics shed 5.8%, tracking weakness in tech shares as investors took profits following recent rallies.

The CAC 40 Index rose 4 points or 0.05 percent on Tuesday to close at 8203 points. Leading the gains are Essilor (3.49%), Kering (2.93%) and Pernod Ricard (2.45%). Top losers were STMicroelectronics (-6.96%), ArcelorMittal (-3.98%) and Schneider Electric (-2.38%).

The CAC 40 rose 0.3% to 8,222 on Tuesday, rebounding from the previous session as investors continued to monitor developments in the Middle East. Risk appetite improved after US President Donald Trump said diplomatic efforts to end the conflict were gaining traction following the cessation of hostilities between Iran and Israel. However, the situation remained fragile, as the Strait of Hormuz remained effectively closed, sustaining disruptions to global energy and shipping flows. In Europe, attention also turned to the European Central Bank’s policy meeting on Thursday. While a quarter-point rate hike is widely expected, markets are focused on signals about the policy outlook, as elevated energy prices continue to fuel inflation risks. Among individual stocks, Société Générale (1.4%), Legrand (1%), and Publicis (1.6%) recorded gains. Elsewhere, chipmaker STMicroelectronics gained 1.3%, tracking a broader global rebound in the semiconductor sector.