The CAC 40 rose 0.8% on Wednesday to close at a new record high of 8,429, supported by easing inflation and continued strength in defense and financial stocks. France’s annual inflation rate slowed to 0.3% in January, its lowest since late 2020, bolstering expectations that the ECB can sustain an accommodative policy stance.
Defense and aerospace shares led the advance, with Thales jumping 4.3%, while Airbus gained 2.1% and Safran 1.9%, driven by ongoing rearmament dynamics and robust order backlogs. Financials also contributed to the upside, as Societe Generale, BNP Paribas and Credit Agricole rose between 1.4% and 3.4%. In contrast, consumer-oriented and defensive stocks underperformed, with Carrefour sliding 4.8% after posting weaker operating profit.
