The CAC 40 Index Closes 1.83% Higher

The CAC 40 Index rose 150 points or 1.83 percent on Friday to close at 8351 points. Leading the gains are ArcelorMittal (5.87%), Societe Generale (5.86%) and Accor (5.62%).

The CAC 40 jumped 1.8% to close at 8,351 on Friday, marking its biggest gain in a month and reaching a seven-week high, as renewed hopes for a Middle East peace deal lifted global sentiment. US President Donald Trump said an agreement with Iran could be reached as early as this weekend after postponing planned strikes, raising the prospect of reopening the Strait of Hormuz and pushing oil prices lower. Domestically, France’s annual inflation rate was confirmed at 2.4% in May, the highest since February 2024, driven mainly by higher energy prices. Meanwhile, the ECB raised interest rates for the first time in nearly three years and signaled that restrictive policy could remain in place through 2027. Financial stocks led gains, with BNP Paribas rising 5% and Société Générale adding 5.9%. Luxury shares also advanced, with LVMH up 3.6% and Hermès gaining 3%. In the industrial sector, Airbus rose 2.3% and Safran added 3.6%. In contrast, TotalEnergies fell 2.1% on lower oil prices.

The CAC 40 climbed 1.4% to above 8,300 on Friday, marking its largest intraday gain in a month to hit a seven-week high, as renewed hopes for a Middle East peace deal lifted global sentiment. US President Donald Trump said a deal could be reached as early as this weekend after postponing planned attacks against Iran. Such a deal could potentially reopen the Strait of Hormuz, pushing oil prices lower. Locally, France’s annual inflation rate was confirmed at 2.4% in May, the highest since February 2024, driven mainly by higher energy prices. Meanwhile, the ECB raised interest rates for the first time in nearly three years and signaled that a restrictive monetary stance could remain in place through 2027. Sector-wise, luxury and financial stocks led the gains, such as LVMH (+3.3%), Hermes (+3.4%), and BNP Paribas (+3.1%). Defense stocks also advanced, while oil giant TotalEnergies dropped 2.7%. Over the week, the benchmark index is on track for its fourth consecutive weekly gain.