BRUSSELS (dpa-AFX) - French stocks gained some ground in positive territory on Tuesday, as investors continue to follow the latest developments with regard to US-Iran peace talks, and the European Central Bank's annual Sintra Forum.
Lower oil prices, data showing a slowdown in inflation, and hopes that the ECB will not hike interest rates in the foreseeable future contribute to the positive mood in the market.
ECB Chief Economist Philip Lane said in Sintra, Portugal, today that the second-round effect from higher energy prices is probably going to take some time to show up and that policymakers won't lock themselves into a path for interest rates in the meantime.
The benchmark CAC 40 was up 41.94 points or 0.5% at 8,409.27 a few minutes before noon.
Schneider Electric moved up by about 2.9%. ArcelorMittal and STMicroelectronics gained 2.3% and 2.2%, respectively.
Legrand, Safran and Saint-Gobain climbed 1.8%, 1.7% and 1.5%, respectively. Airbus, Michelin, Bouygues, Engie and Bureau Veritas gained 1%-1.3%.
BNP Paribas, AXA, Societe Generale, Thales, Stellantis and Accor posted modest gains.
Kering dropped by about 4.5%. Capgemini shed 2.7%, while LVMH and Renault both drifted lower by about 1.5%.
Hermes International, Pernod Ricard, Publicis Groupe, Euronext, L'Oreal and EssilorLuxottica were moderately lower.
Data from the statistical office INSEE showed the annual inflation rate in France slowed to 1.8% in June from 2.4% in May, and below expectations of 2.1%, according to preliminary estimates.
Compared to the previous month, the CPI declined 0.2% in June, the first fall in five months, led by a sharp decline in energy prices. Considering the EU-harmonised CPI, prices rose 2% yoy (vs 2.8% in May) and dropped 0.3% on the month.
Producer prices in France rose 0.3% month-on-month in May, after dropping by 2% in April.
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