CAC 40 Edges Higher as Luxury Stocks Rally

The CAC 40 Index went up by 11 points or 0.13 percent on Wednesday to close at 8378 points. The rise was led by Stellantis NV (3.96%), Edenred (3.94%) and Renault (3.56%). On the downside, the weakerst performers were STMicroelectronics (-7.66%), Air Liquide (-1.89%) and Carrefour (-1.47%).

The CAC 40 inched up 0.2% to close at 8,382 on Wednesday, lifted by gains in the luxury sector. Luxury stocks outperformed, led by LVMH (+2.7%), Hermès (+2.4%), and Kering (+3.6%), on optimism that the global personal luxury goods market is recovering after Bain & Company noted stronger-than-expected second-quarter demand, particularly in the US. Meanwhile, investors continued to assess the impact of escalating tensions in the Middle East. Oil prices rose as the worsening US-Iran conflict continued to fuel concerns over global supply disruptions. Higher energy prices also revived inflation worries. Industrial and financial stocks traded lower, with Air Liquide down 1.9% and AXA shedding 0.8%. STMicroelectronics lost 4%, tracking a selloff in US chipmakers.

The CAC 40 fell 0.3% to 8,340 on Wednesday, following a subdued performance in the previous session, as investors continued to assess the impact of escalating tensions in the Middle East. President Trump’s withdrawal of a proposed 20% tax on goods passing through the Strait of Hormuz offered little market relief, as Tehran’s commitment to keeping the waterway closed fueled supply disruption fears. The latest development sent oil prices higher, reviving concerns over prolonged inflationary pressures. Markets have priced in two rate hikes in 2026, with a September hike now considered certain. Industrial and financial stocks declined, including Airbus (-1.3%), Safran (-1.2%), Air Liquide (-1.6%), BNP Paribas (-1.1%) and AXA (-1.3%). In contrast, luxury stocks outperformed, led by LVMH (2.6%), Hermès (2.2%) and Kering (3%), on optimism that the global personal luxury goods market is recovering after Bain & Company noted stronger-than-expected Q2 demand, particularly in the US.