The CAC 40 index in Paris experienced a modest increase of 0.5%, reaching approximately 7,960 points, as investors navigated ongoing political uncertainty within France. President Emmanuel Macron reappointed Sébastien Lecornu as Prime Minister and retained much of the existing cabinet, which did little to allay concerns regarding the government's capacity to implement key initiatives in a highly fragmented parliament. The newly formed cabinet is anticipated to submit its budget proposal by the upcoming Monday deadline, posing a potential challenge to its delicate political equilibrium.
On the international stage, markets were uplifted by a reduction in trade tensions, following President Trump's more conciliatory approach to the proposed 100% tariffs on Chinese imports, emphasizing that the U.S. does not wish to "harm" China. In terms of sectors, automobile manufacturers were at the forefront of advancements, with Stellantis appreciating by 3.7% and Renault rising by 1.8%. The luxury sector also saw significant gains, with Hermès increasing by 2.2%, LVMH by 1.2%, and Kering by 2.1%. Contrarily, Thales experienced a 1.8% decline, distinguishing itself as one of the few fallers within the index.
