Prices rise on renewed Middle East strikes

The CAC 40 rose 0.4% to around 8,367 on the first trading day of September as investors largely shrugged off escalating Middle East tensions. US forces targeted an island in the Strait of Hormuz, while Iran retaliated with attacks on the UAE and Jordan, driving energy prices higher and reinforcing expectations that the European Central Bank may keep interest rates elevated for longer. Domestically, markets are closely watching how President Macron's successor will tackle key challenges, despite the 2027 presidential election still being months away, including a budget deficit above 5% of GDP, rising debt-servicing costs, and an economy hovering near recession. On the corporate front, Air Liquide jumped 3.6% after reports that activist investor Elliott Investment Management had built a stake in the company. Other notable gainers included TotalEnergies (1.9%), STMicroelectronics (2.0%), and BNP Paribas (0.6%).