The CAC 40 rose by 0.5% to 8,483 on Wednesday, breaking a two-session streak of losses as optimism surrounding a potential near-term reopening of the Strait of Hormuz enhanced risk appetite. Oil prices softened following Iran’s announcement of resumed talks with Oman regarding the management of traffic through the crucial waterway, in the context of increased economic pressure from US President Trump amid the wider conflict.

However, investor caution persisted ahead of Fitch’s rating review of France on August 28, while markets also monitored budget negotiations and the impending presidential election cycle. Prime Minister Sébastien Lecornu’s minority government is anticipated to present its comprehensive budget proposal in late September; however, the fiscal outlook appears uncertain as political focus increasingly diverts toward the fiercely contested presidential race.

Luxury stocks spearheaded the upward movement, with LVMH rising by 1.2%, Hermès increasing by 1.5%, and Kering advancing by 1.8%. Other gainers included Airbus at 1.3%, Safran at 1.6%, and Saint-Gobain at 1.2%.