French Stocks Set to End Three-Week Winning Streak
The CAC 40 traded little changed around 8,653 on Friday and was on track to end a three-week winning streak as investors stayed cautious amid Middle East tensions and higher French inflation.
The CAC 40 traded little changed around 8,653 on Friday and was on track to end a three-week winning streak, as investors remained cautious amid stalled negotiations to end the Middle East conflict and restore normal shipping through the Strait of Hormuz.
Persistent geopolitical tensions continued to fuel concerns over supply disruptions and inflation risks, with US President Donald Trump renewing calls for tougher economic pressure on Iran, while Tehran reportedly adopted a more assertive military posture.
On the domestic front, France's annual inflation rate rose to 2.1% in July 2026 from 1.8% in June, confirming preliminary estimates and reinforcing expectations that price pressures remain elevated.
Among individual stocks, L'Oréal fell 0.2%, Schneider Electric lost 0.5%, Engie dropped 1.0%, and STMicroelectronics declined 1.5%.
In contrast, defense and aerospace stocks outperformed, with Airbus rising 1.2%, Thales gaining 1.6%, and Dassault Systèmes climbing 3.9%.