Following its drop the week before, the CAC 40 saw minimal movement on Monday at 8,641 as investors continued to lower their expectations of a near-term Federal Reserve rate hike. Soft US economic data has bolstered the perspective that the Fed might maintain interest rates at their current levels in September. Markets are now estimating approximately a 67% likelihood of a pause, an increase from under 50% just a month prior.

In Europe, focus is shifting toward the upcoming release of the ECB’s latest Monetary Policy Meeting Accounts later this week, following the decision by policymakers to maintain key interest rates at their current levels in July. Meanwhile, investors largely overlooked the resurgence of geopolitical tensions in the Middle East, where Israel initiated new strikes on Lebanon as President Donald Trump readied further sanctions against Iran.

On the corporate front, STMicroelectronics experienced a notable increase of 3.6%, reflecting the robust performance observed in global technology stocks. In contrast, Danone recorded a decline of 1.3%, followed by Saint-Gobain at 1.1%, and Dassault Systèmes at 1.0%, positioning them among the most significant laggards.