CAC 40 Up 0.7%; STMicroelectronics Soars On Revenue Upgrade

(RTTNews) - Despite ongoing concerns about Middle East tensions, France's equity benchmark CAC 40 was up firmly in positive territory a little before noon on Tuesday, led by strong gains in chipmaker STMicroelectronics.

U.S. President Donald Trump's remarks confirming ongoing U.S.-Iran talks and that he had persuaded Israel and Hezbollah to dial back fighting, appeared to aid sentiment to some extent.

Meanwhile, a European Parliament committee has approved removing most EU duties on U.S. goods to honor last year's trade deal and prevent a tariff escalation.

Brent crude futures tumbled to $92.85 a barrel this morning, losing more than 2%.

The CAC 40 was up 58.14 points or 0.71% at 8,204.73 a few minutes before noon.

STMicroelectronics soared nearly 11% after the chipmaker raised the revenue target for its data center business. The company cited strong demand for AI infrastructure for increasing its revenue outlook.

For fiscal 2026, data center revenues are now expected at about $1 billion, compared to previous view of nicely above $500 million. Assuming the current dynamic continues and with the current engagements, revenues could double in 2027, compared to previous expectation of well above $1 billion, the company said.

BNP Paribas and Schneider Electric gained 2% and 1.9%, respectively. Saint-Gobain, Accor, Danone, Unibail Rodamco, ArcelorMittal and Credit Agricole moved up 1%-1.5%.

Renault shed about 2.5%. Carrefour, EssilorLuxottica, TotalEnergies, Orange and Eiffage lost 0.4%-1%.

Data from Eurostat showed Eurozone consumer price inflation rose to 3.2% in May, up from 3.0% in April and matching market expectations, according to preliminary data. The reading, which is the highest since September 2023, is significantly above the European Central Bank's 2.0% target.

Among major Eurozone economies, inflation picked up in Spain, edging up to 3.6%, the Netherlands (3.4% from 2.5% a month earlier), Italy (3.3% from 2.8%), and France (2.8% from 2.5%). In Germany, inflation slowed to 2.7% from 2.9%.