CAC 40 holds near flat as geopolitics and US inflation offset
France’s CAC 40 hovered near flat around 8,687 as investors weighed reports of a potential US-Iran ceasefire extension against still-elevated tensions and softer-than-expected US inflation.
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.