The CAC 40 increased by 0.1% to finish at 8,339 on Friday, reflecting indications that diplomatic initiatives between the US and Iran are progressing, notwithstanding recent tensions and a decline in inflation rates. US President Trump stated that Iran had expressed a desire to continue discussions, and that the US had consented to this. However, he emphasised that the ceasefire established in June was “over.”

Oil prices declined, alleviating concerns regarding inflation driven by energy costs. Domestically, annual inflation decreased to 1.8% in June, down from a two-year peak of 2.4% in May. This aligns with preliminary estimates and supports the view that price pressures are subsiding. Bond yields declined. Financials exhibited positive performance, with BNP Paribas increasing by 0.9% and Societe Generale rising by 1.4%.

Luxury stocks exhibited a varied performance, as Hermes increased by 1% and L’Oreal saw a gain of 0.4%, whereas LVMH experienced a decline of 0.6%. Meanwhile, the majority of industrial stocks experienced a downturn, with Safran decreasing by 1.1% and Thales falling by 1.5%. TotalEnergies also declined by 0.6% as oil prices experienced a pullback.