FX.co ★ CAC 40 Rallies as Trade Tensions Ease

On Thursday, the CAC 40 index increased by 1.2%, reaching approximately 8,160, building on the prior day's gains. This uptick was driven by a boost in investor confidence after reports surfaced that US President Donald Trump rescinded his earlier threat to impose tariffs on European nations starting February 1. Instead, he proposed a potential future framework agreement concerning Greenland. The move particularly benefited luxury stocks: Kering rose by 2.2%, Hermès increased by 1.6%, and LVMH saw a 1.5% rise. Banking shares also played a significant role in the market rally, with BNP Paribas climbing 1.7%, Crédit Agricole up by 0.9%, and Société Générale increasing by 1.7%, even as Société Générale announced plans to reduce 1,800 positions in its French retail banking operations during the 2026–27 period. Additionally, ArcelorMittal surged 3.6%, Michelin climbed 3.3%, Orange advanced by 3.1%, and Danone gained 2.9%. Conversely, defense sector stocks lagged, with Thales declining 1.4% and Dassault Systèmes slipping by 0.5%.