France’s equity benchmark CAC 40 experienced an upward movement on Tuesday, responding to a report indicating that the Trump administration is prepared to cease U.S. military operations against Iran, even in the event that the Strait of Hormuz remains predominantly closed. Investors assessed regional economic indicators, such as the domestic producer price index and inflation rate in France, alongside a report detailing inflation trends within the euro zone. The CAC 40 increased by 50.87 points, reflecting a rise of 0.65%, reaching 7,823.32 shortly after noon.

• Capgemini experienced an increase exceeding 3.5%.
• Thales, Eiffage, Safran, and Vinci experienced gains ranging from 2% to 2.7%.
• Sanofi experienced an increase of more than 1.5% following the receipt of conditional marketing authorization for Rezurock from the European Commission.
• Euronext, Saint Gobain, Carrefour, Bouygues, AXA, BNP Paribas, Publicis Groupe, Veolia Environment, Accor, Orange, Air Liquide, Unibail Rodamco, Michelin, and Legran experienced gains ranging from 1% to 1.8%.

According to data, the annual inflation rate in France surged to 1.7% in March 2026, marking its highest point since January 2025. This represents an increase from 0.9% in February and slightly exceeds the anticipated rate of 1.6%, based on preliminary estimates. In comparison to the prior month, the CPI increased by 0.9%, marking the highest rise since February 2024. Meanwhile, the EU-harmonised CPI rose by 1.9% year-on-year, marking the highest level since August 2024, and increased by 1.1% month-on-month, representing the largest surge since August 2023.

A separate data indicated that French domestic producer prices decreased by 0.2% month-on-month in February, reversing a 0.5% increase observed in January and aligning with market expectations. In February, domestic producer prices continued their downward trajectory, decreasing by 2.4% on an annual basis, following a 2.3% decline in January. Data indicated that annual inflation in the euro area increased to 2.5% in March 2026, rising from 1.9% in February and falling marginally short of market expectations, which were set at 2.6%, based on a preliminary estimate.