CAC 40 Hits Five-Month High as Trump Cancels Iran Strikes

The French equity benchmark CAC 40 reached a five-month high on Monday, driven by a decline in crude oil prices and easing geopolitical tensions. The market rally occurred after Donald Trump decided to cancel planned military strikes on Iran. Trump stated there is a "good chance" of progress in negotiations to end months of fighting.

Brent crude futures responded to the news with a drop of more than 4.5% from the previous close, hitting a low of $81.55 per barrel before recovering to $83.90. While industrial stocks such as Airbus and Safran climbed, TotalEnergies saw a 2.1% decline. This dip followed the company's agreement to acquire Shell's 4 GW renewables business and its decision to sell a 50% stake in a 1.2 GW renewables portfolio to KKR.

Economic data provided a contrasting signal to the market rally. S&P Global reported that the France Manufacturing PMI declined to 49.8 in July, down from 51.2 in June.