CAC 40 Notably Higher On Hopes Of Middle East Ceasefire Extension

(RTTNews) - French stocks moved higher on Friday following Iran and the United States agreeing in principle to extend their ceasefire agreement by sixty days.

U.S. President Donald Trump is yet to formally approve the deal.

Oil prices fell, easing concerns about inflations. Brent Crude futures were down nearly 2% despite recovering some lost ground.

Investors also digested the latest batch of regional economic data.

The benchmark CAC 40 was up 71.99 points or 0.88% at 8,260.86 nearly half an hour before noon.

Accor and Kering moved up 2.9% and 2.7%, respectively. Saint Gobain gained nearly 2.5%, while Safran, Michelin, Airbus and Stellantis gained 2%-2.1%.

Societe Generale, Michelin and L'Oreal moved up nearly 2%. Hermes International, Publicis Groupe, EssilorLuxottica, LVMH, Renault, BNP Paribas, Credit Agricole, Eurofins Scientific, Bouygues, Schneider Electric, Eiffage and Vinci also posted strong gains.

Engie, Euronext, Orange, TotalEnergies and Danone shed 0.3%-0.75%.

Pernod Ricard shares were little changed. An Indian court has rejected a plea by the French spirits makers seeking permission to sell its products in New Delhi.

Data from INSEE said France's annual inflation rate accelerated to 2.4% in May 2026, from 2.2% in April, according to preliminary estimates. That was below expectations of 2.5%, but the highest level since February 2024.

Meanwhile, the EU-harmonised annual inflation rate rose to 2.8% from 2.5%, while monthly CPI increased by 0.1% following a 1.2% rise in the previous month, with both figures coming in line with market expectations.

France's economy contracted by 0.1% quarter-on-quarter in the first quarter of 2026, compared with preliminary estimates of a flat reading and reversing a 0.2% expansion in the fourth quarter of the previous year. This marked the first contraction since Q2 2020.

On a yearly basis, GDP expanded 0.9%, lower than initial estimates of 1.1% and slowing from 1.3% in Q4.