The CAC 40 index rose 0.5% to above 7,920 on Tuesday, recovering part of the previous session’s setback, supported by optimism over a potential Russia–Ukraine peace deal.
Sentiment improved after US President Trump pledged to support Ukraine’s security in any agreement, following a White House meeting with European leaders where formal guarantees are expected within 10 days.
German Chancellor Friedrich Merz later confirmed that Ukrainian President Zelenskiy and Russian President Putin are set to meet within two weeks, with Trump expected to join in a three-way summit to launch direct negotiations.
Meanwhile, caution lingered over this week’s Federal Reserve’s Jackson Hole symposium, where Chair Powell may offer guidance on the rate outlook.
On the corporate front, gains were led by LVMH (1%), Hermes (0.7%), and Loreal (0.7%), while defense stocks dropped nearly 1%, pressured by signs of possible de-escalation in the Russian-Ukraine war.
