CAC 40 Holds Steady Amid Trade and AI Uncertainty

CAC 40 Updates

In a global market landscape influenced by trade tensions and concerns surrounding AI, the CAC 40 benchmark, which monitors the 40 largest French stocks on Euronext Paris, is trading just above the flatline. The U.S. Supreme Court’s verdict, along with the subsequent blanket tariffs, has contributed to the uncertainties surrounding the trade deals established with the U.S. last year. Sentiment, however, remains cautious as the European Parliament has postponed a vote on the US-Europe agreement for a second time.

The CAC 40 is presently at 8,507.33, reflecting a 0.12 percent increase from the prior close of 8,497.17. The day’s trading fluctuated between 8,461.88 and 8,509.21. At current levels, the index has experienced a 5.1 percent increase over the past year. In the current subdued atmosphere, 15 stocks within the 40-stock index are experiencing trades below the flatline.

  • STMicroElectronics, Renault, and Stellantis have all experienced an increase of nearly 2 percent.
  • Engie, Carrefour, and Euronext are experiencing overnight gains of approximately 1.5 percent.
  • Capgemini experienced the most significant losses, with a decline of 2.9 percent.
  • Credit Agricole, Societe Generale, and BNP Paribas have all experienced declines of over 1.7 percent as concerns grow regarding AI’s potential to disrupt traditional business lines.

In the midst of the uncertainty surrounding tariffs that are driving demand for safe haven assets, yields on treasuries have softened globally. Simultaneously, yields on France’s 10-year bonds fell by 0.49 percent to 3.266 percent, compared to the previous close of 3.282 percent. Yields fluctuated between 3.284 percent and 3.265 percent during the day’s trading session.

The U.S. Dollar is strengthening, as evidenced by the 6-currency Dollar Index, which stands at 97.87, reflecting a gain of 0.17 percent from the prior close of 97.71. The EUR/USD pair has decreased by 0.03 percent, now standing at 1.1781. The pair fluctuated within the range of 1.1797 to 1.1768. The EUR/GBP pair is currently at 0.8734, reflecting a decline of 0.05 percent from the flatline. In the context of the yen’s weakness, the EUR/JPY pair has surged by 0.69 percent, now trading at 183.51.