CAC 40 Rises on Middle East Peace Optimism

The CAC 40 Index gained 119 points or 1.40 percent on Monday to close at 8629 points. Gains were led by Capgemini (4.59%), Renault (4.40%) and Essilor (3.95%).

The CAC 40 rose 1.2% to close at 8,614 on Monday as investors welcomed renewed hopes for diplomacy after US President Donald Trump announced that talks with Iran would resume following his decision to cancel a planned military strike. Easing geopolitical tensions pushed oil prices lower and reduced expectations of further ECB tightening, although a September rate hike remains widely anticipated. Sentiment was also supported by a fresh round of corporate earnings. Luxury stocks advanced, with LVMH (+2.5%), Hermès (+1.9%), and Kering (+1.5%) gaining after Kering reported 1% first-half revenue growth as Gucci's sales decline moderated. Industrial stocks also outperformed, led by Schneider Electric, Airbus (+2.9%), and Safran (+3.8%), following Airbus' strong first-half results and progress in resolving its Pratt & Whitney dispute.

The CAC 40 climbed 1% to 8,591 on the first trading day of August, reaching its highest level since late February, as investors embraced renewed hopes for diplomacy after US President Donald Trump announced that talks with Iran would resume following his decision to halt a planned strike. The easing geopolitical tensions drove oil prices lower and encouraged markets to scale back bets on additional ECB tightening, although a September hike remains widely expected. Market optimism was further supported by a fresh batch of corporate earnings reports and company updates. Luxury stocks advanced, with LVMH (1.4%), Hermès (1.2%) and Kering (0.2%) gaining after Kering reported 1% first-half revenue growth as Gucci’s decline narrowed. Industrial heavyweights also supported the index, including Schneider Electric (1.4%), Airbus (3%) and Safran (2.8%), following Airbus’ strong first-half performance and progress toward resolving its Pratt & Whitney dispute.