The CAC 40 Index Closes 0.62% Higher

The CAC 40 Index went up by 50 points or 0.62 percent on Wednesday to close at 8141 points. The rise was led by ArcelorMittal (2.28%), Edenred (2.24%) and ENGIE (1.95%). On the downside, the weakerst performers were Renault (-4.00%), Stellantis NV (-2.97%) and Capgemini (-2.81%).

The CAC 40 rose 0.6% to close at 8,141 on Wednesday as oil prices and bond yields paused after their recent surge. Oil prices fell amid signs of rising US inventories and reports that Saudi Arabia is offering additional crude cargoes via Oman. Meanwhile, yields retreated after a global rally in recent weeks weighed on equity markets, as investors fear central banks will keep monetary policy tighter for longer to contain inflationary pressures from soaring energy prices. Luxury stocks gained amid lower risk aversion, with LVMH up 1%, Hermès rising 0.8% and Kering adding 1.3%. Industrial shares also advanced, with Airbus up 1%, Safran adding 1.2%, Legrand up 1.8% and EssilorLuxottica rising 0.8%. STMicroelectronics (+2%) and Schneider Electric (+1.5%) tracked strength in Wall Street chipmakers. In contrast, TotalEnergies shed 0.7% on the oil pullback.

The CAC 40 rose 0.4% to 8,118 on Wednesday, rebounding from a nearly four-month low hit in the previous session as weaker oil prices and lower bond yields supported equities. Markets now await the Federal Reserve’s monetary policy decision later today, with traders pricing in roughly a 93% chance of a 25bps hike and looking for guidance on the policy outlook. The European Central Bank recently raised its key interest rates by 25bps at its September meeting, citing persistent inflationary pressures linked to the Middle East conflict and warning that inflation is expected to remain above its 2% target for an extended period. Notable gainers included Schneider Electric (+1.3%), BNP Paribas (+1.1%), STMicroelectronics (+1.9%), and Legrand (+1.5%). In contrast, L’Oréal (-1.2%), Hermès (-0.8%), and Danone (-1.2%) declined.