CAC 40 Rises 0.7% as STMicroelectronics Surges on Revenue Boost

STMicroElectronics

Despite ongoing concerns regarding tensions in the Middle East, France’s equity benchmark CAC 40 was firmly in positive territory just before noon on Tuesday, buoyed by significant gains in chipmaker STMicroelectronics. U.S. President Donald Trump’s comments affirming the continuation of U.S.-Iran discussions and his influence in encouraging Israel and Hezbollah to reduce hostilities seemed to bolster sentiment to a certain degree.

Meanwhile, a committee within the European Parliament has sanctioned the elimination of the majority of EU tariffs on U.S. products to uphold the trade agreement established last year and avert a potential escalation of tariffs. Brent crude futures experienced a decline, falling to $92.85 a barrel this morning, representing a loss exceeding 2%. The CAC 40 increased by 58.14 points, reflecting a rise of 0.71%, reaching a level of 8,204.73 shortly before noon.

  • STMicroelectronics experienced a significant increase of nearly 11% following the upward revision of its revenue target for the data center segment. The company highlighted robust demand for AI infrastructure as a factor in raising its revenue outlook.
  • For fiscal 2026, data center revenues are now anticipated to reach approximately $1 billion, a significant increase from the prior estimate of comfortably exceeding $500 million. Assuming the prevailing dynamics persist and with ongoing engagements, revenues could potentially double by 2027, surpassing prior expectations of significantly exceeding $1 billion, according to the company.
  • BNP Paribas and Schneider Electric experienced increases of 2% and 1.9%, respectively.
  • Saint-Gobain, Accor, Danone, Unibail Rodamco, ArcelorMittal, and Credit Agricole experienced an increase of 1% to 1.5%.
  • Renault experienced a decline of approximately 2.5%.
  • Carrefour, EssilorLuxottica, TotalEnergies, Orange, and Eiffage experienced declines ranging from 0.4% to 1%.

Data indicated that consumer price inflation in the Eurozone increased to 3.2% in May, up from 3.0% in April, aligning with market expectations, as per preliminary data. The reading, which is the highest since September 2023, is notably above the European Central Bank’s 2.0% target. Among the principal economies of the Eurozone, inflation has shown an upward trend in Spain, rising to 3.6%. The Netherlands experienced an increase to 3.4%, up from 2.5% the previous month, while Italy’s inflation rose to 3.3% from 2.8%. France also saw a slight uptick, with inflation moving from 2.5% to 2.8%. In Germany, inflation decreased to 2.7%, down from 2.9%.