The CAC 40 Index Closes 0.44% Higher

The CAC 40 Index rose 37 points or 0.44 percent on Tuesday to close at 8404 points. Leading the gains are Schneider Electric (2.88%), Safran (2.47%) and ArcelorMittal (2.33%). Top losers were TP (-11.12%), Kering (-6.44%) and Capgemini (-2.85%).

The CAC 40 rose 0.4% to close at 8,404 on Tuesday as investors followed developments at the ECB’s Sintra Forum. Policymakers welcomed the recent decline in oil prices but warned that energy costs remain elevated and could continue to feed inflationary pressures. After raising interest rates last month, the ECB is weighing whether further tightening will be needed in the coming months, even as prospects for US-Iran diplomacy have weighed on oil prices. ECB President Lagarde said the ECB is again in a position to rely mainly on interest rates to guide inflation and preserve price stability. Meanwhile, France’s preliminary annual inflation eased to 1.8% in June from 2.4% in May, while the harmonised rate slowed to 2.0%, in line with the ECB’s target. Financial stocks posted gains, with BNP Paribas up 1.5%. Industrials also advanced, including Airbus (+1.5%), Safran (+2.5%), and Schneider Electric (+2.6%). Luxury stocks fell, Kering plunged 6.9% on cautious rating upgrades from brokerages.

The CAC 40 rose 0.4% to 8,401 on Tuesday, putting the benchmark on track for a quarterly gain, as investors closely monitored the latest developments in US-Iran peace talks and the ECB's annual Sintra Forum. While US President Donald Trump said Iran had requested a meeting in Doha, Qatar, Iran denied any planned talks with the US, saying it would only send an expert delegation to discuss the release of frozen Iranian funds. At the Sintra Forum, ECB President Christine Lagarde remarked that the ECB was once again in a position to rely primarily on interest rates to steer inflation and maintain price stability. Domestically, preliminary estimates showed that annual consumer inflation slowed to 1.8% in June from 2.4% in May, reinforcing signs of easing price pressures. Among individual stocks, notable gainers included Schneider Electric (2.7%), Safran (1.3%), STMicroelectronics (2.6%), and Legrand (2.2%). For June, the CAC 40 is on track for a third consecutive monthly gain.