CAC 40 Extends Winning Streak

The CAC 40 edged 0.1% higher to close at 8,369 on Friday, extending its four-day winning streak despite elevated crude prices and bond yields souring risk appetite. Oil prices were volatile after US President Trump said the US no longer needed a deal with Iran. TotalEnergies added 1.9%, supporting the index. Yields climbed on increased bets for further ECB rate hikes as annual inflation hit 3.4%, the highest since December 2023. Bonds also remained under pressure from fiscal concerns and political turmoil ahead of next year’s election. Industrial stocks fell, with Airbus down 0.8% and Safran down 1.8%. Financials were mixed after Goldman Sachs downgraded European banks to "neutral" and insurers to "underweight" for 2027. Société Générale fell 0.5%, while AXA gained 1.1%. Tech stocks declined amid uncertainty triggered by Nvidia's leadership crisis, with STMicroelectronics down 0.9% and Schneider Electric losing nearly 0.5%. The index rose 3% for the week.

The CAC 40 Index went up by 9 points or 0.10 percent on Friday to close at 8370 points. The rise was led by TP (2.54%), TotalEnergies SE (1.76%) and Pernod Ricard (1.54%). On the downside, the weakerst performers were ArcelorMittal (-3.03%), Kering (-2.28%) and Safran (-1.60%).

The CAC 40 was little changed above the 8,000 mark on Friday, set to halt a four-day winning streak as rising crude prices and elevated bond yields dampened risk appetite. Oil prices rose after US President Trump stated that Washington no longer required an agreement with Iran, dimming prospects for diplomatic de-escalation. Yields climbed on increased bets of further ECB interest rate hikes after annual inflation rose to 3.4%, marking its fastest pace since December 2023. Government bonds also remained under pressure from domestic fiscal concerns and political turmoil ahead of next year's presidential election. Heavyweight industrial stocks posted sharp losses, with Airbus and Thales down over 1% each, while Safran shed nearly 2%. Financials were mixed, with Société Générale down 1% while AXA gained nearly 1%. Tech stocks fell amid sector uncertainty triggered by a leadership crisis at Nvidia, with STMicroelectronics dropping 1.5% and Schneider Electric losing nearly 1%.