The CAC 40 Index Opens 0.13% Higher

The CAC 40 shed 0.3% to close at 8,651 on Thursday amid conflicting signals over efforts to secure a lasting ceasefire between the US and Iran. Washington and Tehran traded accusations over a deal to reopen the strategically vital Strait of Hormuz, with the US saying Iran had failed to meet its obligations, while Iran countered that Washington had not delivered on ending a blockade of Iranian ports. High energy prices are expected to weigh more heavily on eurozone economies as large energy importers. The ECB is set to raise interest rates once more next month, as higher energy prices push inflation further from the bank’s 2% target, reaching 2.9% last month. Luxury stocks were mostly lower amid elevated risk aversion, with LVMH down 0.7% and Hermès losing 1.2%. Industrials also fell, with Safran down 1.9%, Vinci losing 1.2% and Thales shedding 1.1%. In contrast, Sanofi (+1.2%) and Michelin (+0.7%) gained as euro area industrial production came in slightly above forecasts.

The CAC 40 hovered near the flatline at around 8,687 on Thursday, following the previous session's decline as investors remained cautious amid conflicting signals over efforts to secure a lasting ceasefire between the US and Iran. While reports indicated that Washington and Tehran had agreed to extend a 60-day ceasefire brokered by Pakistan, tensions remained elevated after Iran threatened to prolong the conflict until the end of President Donald Trump's term and again rejected his claims that the US has "total control" over the Strait of Hormuz. Offsetting some geopolitical concerns, softer-than-expected US inflation data reinforced expectations that the Federal Reserve will keep interest rates unchanged at its September meeting. Among the index heavyweights, gains were led by LVMH (0.5%), L'Oréal (0.4%), TotalEnergies (0.5%), and Hermès (0.9%). In contrast, STMicroelectronics (-1%), Dassault Systèmes (-0.9%), and Air Liquide (-0.4%) were among the notable decliners.

The CAC 40 Index is gaining 11 points or 0.13 percent on Thursday. Leading the gains are Societe Generale (1.03%), Eurofins Scientific SE (0.98%) and Accor (0.93%). Top losers are STMicroelectronics (-2.16%), Dassault Systemes (-1.68%) and TP (-0.61%).