CAC 40 Eases Early Gains in Cautious Trading

CAC Futures Updates

France’s equity benchmark CAC 40 fell into negative territory late in the morning on Friday, unable to sustain early gains, as oil prices reversed early losses and increased, prompting investors to hesitate in acquiring stocks at elevated levels. Oil prices exhibited a moderation earlier in the day, reflecting the initiatives undertaken by the U.S. and Israel to alleviate apprehensions regarding persistent fuel supply challenges. Israeli Prime Minister Benjamin Netanyahu stated that U.S. President Donald Trump had asked for a cessation of further attacks on the Iranian gas field.

Trump indicated that he does not intend to send American troops to the Middle East. In an effort to augment oil supply and reduce energy prices, U.S. officials indicated that Washington might soon remove sanctions on Iranian oil currently held in tankers. However, oil prices increased subsequently on reports that the U.S. President is considering a forced takeover of Iran’s Kharg Island. The CAC 40 experienced an initial rise to 7,883.27, subsequently declined to 7,771.82, before making a slight recovery to 7,813.30, reflecting an increase of 5.43 points or 0.07%.

  • Capgemini and Hermes International have experienced a decline of nearly 2%.
  • Dassault Systemes has decreased by approximately 1.8%.
  • Safran, Euronext, Publicis Groupe, and Thales have experienced declines ranging from 1% to 1.4%.
  • Michelin, TotalEnergies, EssilorLuxottica, and LVMH are experiencing slight declines.
  • Accor has experienced an increase of nearly 2.5%.
  • Saint-Gobain is experiencing an increase of 1.8%.
  • Renault, Eiffage, Bouygues, L’Oreal, Unibail Rodamco, and STMicroelectronics are all rising between 1% and 1.6%.

Stellantis has experienced a 0.5% increase following the announcement that its battery-electric vehicles in North America can now utilize the Tesla Supercharger network through the use of adapters. Schneider Electric, Carrefour, Credit Agricole, Air Liquide, Vinci, Kering, and Orange have recorded modest gains.  In economic news, the current account surplus of the euro area rose in January, reaching its highest level since June 2024, according to data released by the European Central Bank on Friday. The current account surplus increased to EUR 38 billion, up from EUR 13 billion in December. This marked the highest level since June 2024, when the surplus amounted to EUR 46.7 billion.

The surplus in goods trade expanded to EUR 33 billion, up from EUR 19 billion, while the surplus in services increased to EUR 16 billion, rising from EUR 14 billion. Primary income exhibited a surplus of EUR 4 billion, contrasting with a deficit of EUR 4 billion recorded in the preceding month. The deficit in the secondary income persisted at EUR 15 billion. Over the twelve months leading to January, the current account surplus decreased to EUR 261 billion, representing 1.6% of euro area GDP, down from EUR 377 billion, which accounted for 2.5% a year prior.