CAC 40 Modestly Higher On Weak Oil Prices, Easing Middle East Tensions

The French equity market recorded modest gains on Wednesday, buoyed by declining crude oil prices and easing geopolitical tensions in the Middle East. Investor sentiment improved following reports that Oman and Iran discussed establishing a temporary joint maritime corridor in the Strait of Hormuz, fostering renewed optimism for regional stability. Consequently, international benchmark Brent crude futures dropped approximately 3% to trade around $84.56 a barrel, reducing input cost pressures across several corporate sectors. The benchmark CAC 40 index rose by 35.15 points, or 0.42%, to reach 8,474.35 just past midday. Sector performance was led by industrial and luxury names, with ArcelorMittal rising 3.25%, Kering advancing 2%, and Safran gaining 1.9%. Notable support was also seen across heavyweights including Airbus, BNP Paribas, and Hermes International. However, broader upside momentum remained capped as market participants exercised caution ahead of the French presidential election cycle. A lack of domestic economic catalysts and quarterly earnings reports also kept trading activity measured, while select individual stocks like Capgemini and TotalEnergies faced selling pressure.