CAC 40 Edges Higher Amid ECB Rate Cut Hopes and Trade Uncertainty

The CAC 40 climbed 20.26 points, or 0.26%, to reach 7,799.98, recovering from a sluggish start to the trading session. Market sentiment was primarily driven by expectations that the European Central Bank will implement interest rate reductions at its upcoming meeting. However, this optimism was balanced by caution following a U.S. federal court ruling against President Donald Trump's broad tariff initiatives. The ruling has added a layer of uncertainty to the global trade outlook, leaving investors hesitant to commit to aggressive buying. Performance across the index was mixed. Luxury and energy names provided notable support, with L'Oreal rising 1.5%, Hermes International gaining 1.3%, and TotalEnergies advancing 1.1%. Eurofins Scientific saw the strongest gain among the majors, climbing over 2%. Conversely, the healthcare sector faced headwinds. Sanofi shares experienced a sharp decline of 4.2% after the company reported mixed results from two Phase 3 trials of Itepekimab, an investigational treatment for chronic obstructive pulmonary disease (COPD). Additionally, Carrefour shares dropped nearly 6%. The overall modest gains reflect a tug-of-war between monetary policy optimism and geopolitical trade friction, leaving the French market in a state of cautious consolidation.