French Stocks on 3-Session Gains

The CAC 40 rose 0.4% to 8,185 on Wednesday, extending gains for a third straight session as signs of progress in US-Iran talks and optimism over a key international meeting lifted risk appetite. Sentiment improved after President Trump called talks with Iranian officials “very good,” while Tehran signaled it could reopen the Strait of Hormuz within seven days if Washington eases military pressure and lifts restrictions on Iranian ports. Investors were also encouraged ahead of the Trump-Xi summit from September 23 to 25, which could yield fresh trade agreements. Domestically, flash data showed Composite PMI jumped to 51.2 in September from 48.5 in August, marking its strongest reading since August 2024. The return to expansion was driven by the services sector (51.4 vs 48.0), even as the manufacturing sector (50.3 vs 51.1) eased. Among the top performers were LVMH (1.3%), Safran (1.1%), BNP Paribas (1.0%), EssilorLuxottica (1.0%), and Christian Dior (1.1%).