CAC 40 Steady on Finance and Energy Gains

The CAC 40 inched up to close at 8,367 on Tuesday after softer-than-expected US inflation data. US consumer prices declined in June for the first time in six years, while core inflation was little changed, easing pressure on the Federal Reserve to raise interest rates. Financials traded higher, with BNP Paribas up 1.4% and Credit Agricole adding 1.6%. Meanwhile, TotalEnergies advanced 1.1% as oil prices rose amid ongoing tensions in the Middle East. Other notable gainers included Schneider Electric (+1.7%) and Engie (+0.9%). In contrast, luxury stocks tumbled on rising geopolitical risks. LVMH lost 1.7%, L'Oreal shed 0.8%, and Kering retreated 2.4%. Safran (-0.7%), Sanofi (-2.1%), and EssilorLuxottica (-2.5%) also posted losses.

The CAC 40 fell 0.8% to 8,295 on Tuesday, reversing the previous session’s gains as investors continued to weigh the impact of ongoing tensions in the Middle East. President Trump reimposed a US blockade on Iranian vessels transiting the Strait of Hormuz and sought a 20% fee on all other cargo passing through the waterway. US forces are also expected to resume maritime patrols and restrictions around Iranian ports and coastal areas, a move that Iran views as a violation of the interim peace agreement and one that could prompt further attacks on commercial shipping. The developments drove oil prices sharply higher, stoking concerns over inflation and the prospect of tighter monetary policy. Meanwhile, attention was also focused on the start of the earnings season. Among decliners, luxury stocks led the losses, with LVMH (-2.1%), Hermès (-1.8%), and Kering (-2.4%) under pressure. Other notable laggards included Safran (-1.2%), EssilorLuxottica (-2.5%), and Société Générale (-1.4%).

The CAC 40 Index gained 7 points or 0.09 percent on Monday to close at 8346 points. Gains were led by Edenred (4.29%), TP (3.76%) and Capgemini (2.99%). Biggest losers were Safran (-2.14%), Accor (-1.96%) and Legrand (-1.60%).