CAC 40 Rises Nearly 1%; Auto, Luxury Stocks Move Higher

(RTTNews) - French stocks gained significant ground in positive territory on Wednesday despite lingering concerns about Middle East tensions and likely interest rate hike by the European Central Bank in June.

Weak oil prices helped lift sentiment. Brent crude futures fell below $94 a barrel after reports emerged that some LNG tankers have passed through the Strait of Hormuz in recent days, helping ease supply concerns amid prolonged West Asia conflict.

U.S. Secretary of State Marco Rubio said a potential deal to end the Middle East conflict could "take a few days" amid unresolved issues surrounding Tehran's frozen assets and unrestricted passage through Hormuz.

Iran condemned the recent self-defense strikes conducted by U.S. forces and said it would leave no act of aggression unanswered.

The benchmark CAC 40 was up 73.85 points or 0.9% at 8,246.96 a few minutes past noon.

Auto stocks gained after data showed European car sales climbed for the third consecutive month in April, helped by strong demand for electric and hybrid vehicles.

Renault rallied 4.7% and Stellantis climbed 4.4%. LVMH moved up nearly 4%, while Hermes International and Kering, both gained about 4.5%. L'Oreal advanced by 3.2%.

Michelin, Saint-Gobain, Eiffave, Airbus and Pernod Ricard gained 2%-3%. EssilorLuxottica, Air Liquide, Safran, Thales, STMicroElectronics, Eurofins Scientific and Danone also posted strong gains.

Capgemini dropped by about 3.3%. TotalEnergies shed 3.1% and Engie drifted lower by 2%. Euronext and Orange declined by 1.4% and 1%, respectively. Legrand and Carrefour posted modest losses.

In economic news, data from INSEE showed the consumer confidence indicator in France fell to 82 in May from 84 in April, below expectations of 83, marking its lowest level since March 2023.