The Paris CAC 40 rose 0.5% to around 7,960, as investors weighed lingering political uncertainty in France. President Emmanuel Macron reappointed Sébastien Lecornu as Prime Minister and announced a largely unchanged cabinet, but the move did little to dispel concerns about the government’s ability to push through key measures in a deeply divided parliament. The new cabinet is expected to present its budget proposal by Monday’s deadline, a potential test of its fragile political balance. On the international front, markets were buoyed by easing trade tensions after President Trump softened his stance on potential 100% tariffs on Chinese goods, saying the US does not want to “harm” China. Sector-wise, automakers led the advance, with Stellantis climbing 3.7% and Renault up 1.8%. Luxury stocks also posted strong gains, including Hermès (+2.2%), LVMH (+1.2%), and Kering (+2.1%). On the downside, Thales slipped 1.8%, one of the few decliners in the index.
