France’s equity benchmark CAC 40 reached a five-month high on Monday, buoyed by diminishing geopolitical tensions following U.S. President Donald Trump’s cancellation of proposed military actions against Iran. He indicated a ‘good chance’ of advancement in negotiations intended to resolve the prolonged conflict.

A notable decline in crude oil prices played a crucial role in enhancing the demand for riskier assets, including equities. Brent crude futures experienced a decline, reaching a low of $81.55 per barrel before rebounding to $83.90, reflecting a decrease of over 4.5% from the prior close. The CAC 40 increased by 119.21 points, reflecting a rise of 1.4%, reaching a level of 8,628.85 just moments ago.

• Airbus, Safran, Vinci, Bouygues, Dassault Systemes, and ArcelorMittal experienced an increase of 2.5% to 3%.
• Accor, Legrand, Renault, Saint Gobain, and Societe Generale experienced increases ranging from 2% to 2.3%. Stellantis experienced an increase of nearly 2%.
• Eiffage, Schneider Electric, BNP Paribas, Michelin, Sanofi, Thales, Hermes International, Publicis Groupe, Credit Agricole, EssilorLuxottica, LVMH, and Veolia Environment experienced gains ranging from 1% to 1.8%.
• TotalEnergies experienced a decline of 2.1% following its agreement to acquire Shell’s 4 GW renewables business, concurrently divesting a 50% stake in a 1.2 GW renewables portfolio to KKR.
• Euronext experienced a decline of nearly 1%. Carrefour, Engie, Orange, and AXA also saw marginal decreases.

In economic news, data indicated that the S&P Global France Manufacturing PMI decreased to 49.8 in July from 51.2 in June, signalling a renewed deterioration in factory activity after the preliminary estimate had suggested stagnation.