The CAC 40 Index Closes 0.75% Higher

The CAC 40 rose 0.8% to close at 8,180 on Friday, rebounding from two straight sessions of losses as oil prices pulled back. Prospects for diplomatic efforts to ease tensions around the Strait of Hormuz dragged crude prices lower. Gulf foreign ministers are expected to meet their Iranian counterpart in Oman on Monday as part of efforts to secure support for a temporary arrangement to manage shipping through the strait. The halt in the surge in energy prices allowed equities to enjoy some respite. Luxury stocks closed mostly higher as risk aversion eased, with LVMH adding 2.2%, L’Oréal up 1.1% and Kering rising 1.9%. Industrials also posted gains across multiple subsectors, with Airbus up 1.8%, Safran rising 2.5%, Schneider Electric adding 1.3%, STMicroelectronics gaining 2.4% and Stellantis advancing 3.1%. Financials also moved higher, with BNP Paribas and Société Générale each up 1.1%. Despite Friday’s rebound, the CAC 40 lost 1.4% on the week.

The CAC 40 Index rose 61 points or 0.75 percent on Friday to close at 8178 points. Leading the gains are Stellantis NV (2.74%), Safran (2.67%) and STMicroelectronics (2.21%). Top losers were Carrefour (-1.48%), ENGIE (-1.32%) and Edenred (-1.13%).

The CAC 40 rose 0.4% on Friday, rebounding from two straight sessions of losses as a pullback in oil prices and global bond yields offered some relief to investors. Still, Middle East tensions kept sentiment cautious after US President Donald Trump said he did not expect the Iran war to end before the November midterm elections and that oil prices were unlikely to decline until then. In Europe, the European Central Bank recently delivered its widely anticipated 25 bps rate hike, its second increase this year, as it sought to contain an energy-driven rise in inflation. The ECB also warned that price pressures could prove persistent, fueling expectations of further policy tightening as early as October. Notable gainers included Airbus (1.6%), Safran (2%), Societe Generale (1%) and Kering (1%). Despite Friday’s rebound, the CAC 40 remained on track for its fifth consecutive weekly decline.