CAC 40 Rebounds as Oil Prices and Bond Yields Ease

The CAC 40 Index gained 31 points or 0.40 percent on Tuesday to close at 7865 points. Gains were led by Legrand (3.55%), Veolia (3.02%) and Vinci (2.92%). Biggest losers were Schneider Electric (-3.78%), Thales (-2.34%) and Air Liquide (-0.97%).

The CAC 40 rose 0.4% to 7,865 on Tuesday, rebounding from the previous session amid easing oil prices and a pullback in global bond yields. Oil prices fell as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns, reducing energy-driven inflation pressures. Yields also eased from multi-year highs, offering some respite to credit-sensitive markets. Financials posted solid gains, with BNP Paribas up 2.5% and AXA adding 1.5%. Luxury and industrial stocks were mixed as concerns over France’s high debt levels and political uncertainty lingered. The government sought to ease market jitters by unveiling its 2027 budget. The state budget deficit widened to €159.6 billion in January-August from €157.5 billion a year earlier. LVMH added 1%, while Hermes shed 0.5%. Among industrials, STMicroelectronics gained 2.5%, tracking strength in US chipmakers. Schneider Electric lost 3.8%, extending Monday’s losses after announcing its acquisition of PTC.

The CAC 40 rose 0.4% to 7,863 on Tuesday, rebounding from the previous session even as concerns over France’s high debt levels and political uncertainty lingered. As investors continued to shed French assets, Prime Minister Sébastien Lecornu’s government sought to ease market jitters by unveiling its 2027 budget. Far-right presidential candidate Marine Le Pen also proposed cutting government spending by €25 billion a year, seeking to strengthen her fiscal credibility as concerns over France’s public finances and bond-market pressures mount. The state budget deficit widened to €159.6 billion in January-August from €157.5 billion a year earlier, as expenditure rose 4.4% to €362.97 billion while revenue increased 3.1% to €228.55 billion. Meanwhile, industrial production unexpectedly fell 0.3% month-on-month in August, as weaker electricity output offset a modest recovery in manufacturing. Notable gainers included Safran (1.8%), EssilorLuxottica (2.3%), and STMicroelectronics (2.3%).