The CAC 40 Index Closes 0.79% Higher

The CAC 40 Index rose 66 points or 0.79 percent on Friday to close at 8365 points. Leading the gains are Dassault Systemes (7.90%), Capgemini (4.44%) and Safran (2.66%). Top losers were Carrefour (-4.85%), STMicroelectronics (-2.14%) and Thales (-1.13%).

The CAC 40 rose 0.9% to close at 8,372 on Friday as easing oil prices cooled energy-driven inflation concerns. Lower bond yields supported financials and the broader market. Crédit Agricole gained 2.6%, Société Générale rose 1.9%, and BNP Paribas added 2.1% after reporting earnings and revenue above expectations. An ECB survey showed euro area inflation expectations remained broadly stable over the past three months, with inflation expected to slow sharply next year before returning to the 2% target in 2028. Meanwhile, France's private sector contraction eased in July, with the S&P Global Flash Services PMI rising to 49.8 from 46.8 in June, beating forecasts. Luxury stocks advanced, with LVMH up 1.8%, L'Oréal gaining 1.6%, Hermès rising 1.3%, and Kering adding 1.5%. In industrials, Airbus gained 0.8% and Safran climbed 2.6%, while Thales slipped 0.8% as investors took profits following its 5.1% surge in the previous session.

The CAC 40 was little changed around 8,303 on Friday but remained on track for a weekly loss as investors weighed escalating Middle East tensions and fresh US trade measures. With the US carrying out its 13th consecutive day of strikes on Iran, President Trump threatened further military action against Iran and the Houthis over any additional attacks on Red Sea shipping. On the trade front, Trump imposed tariffs ranging from 10% to 12.5% on imports from major trading partners over alleged failures to curb forced labor in supply chains, though the EU tariff rate is expected to remain capped at 10%. Domestically, preliminary data showed private-sector activity improved to a five-month high of 49.6 in July, as stronger services activity (49.8 vs 46.8) offset a deeper manufacturing downturn (48.8 vs 49.1). Among stocks, LVMH (-0.3%), Sanofi (-2.6%), and Christian Dior (-1.1%) declined, while banks outperformed, led by BNP Paribas (1.2%), Crédit Agricole (1.5%), and Société Générale (0.9%).