French Stocks Rise on Monday

The CAC 40 closed 1.1% higher at 8,047 on Monday, as diplomatic efforts in the Middle East helped ease concerns over further escalation and reduced risk sentiment. Luxury shares outperformed, with Hermes gaining 2.4%, LVMH rising 2% and Gucci owner Kering advancing 1.6%. Tech shares also advanced amid renewed sentiment across the sector, with STMicroelectronics advancing 4%. Stellantis gained 1.9%, despite reporting that a shortage of components was disrupting the production of some Fiat models in Italy. A decline in sovereign yields offered some relief to bank's balance sheets, with gains in BNP Paribas (1.7%), Societe Generale (1.2%), although Credit Agricole held close to the flatline. Utilities Engie (0.5%) and Veolia (0.3%) edged higher. Other notable gainers included Safran (4%), Saint-Gobain (3.9%), ArcelorMittal (3.7%) and Accor (2.8%). Conversely, TotalEnergies fell 2.6%, tracking lower oil prices.