CAC 40 Surges on Hopes of Middle East Ceasefire Extension

The CAC 40 index jumped sharply on May 29, 2026, as investors cheered the growing likelihood that a fragile Middle East truce will be extended, dialing down geopolitical risk premiums. The Paris benchmark climbed over 2% in morning trading, building on early gains after diplomatic signals pointed to a possible deal. The rally was broad-based, with travel and luxury goods stocks among top performers as Brent crude retreated below $70 per barrel on expectations of easing supply fears. A sustained ceasefire would dampen energy costs—a critical relief for Europe’s import-heavy economies and a catalyst for consumer discretionary shares. Optimism was further fueled by a softer U.S. dollar and a dip in bond yields, as traders rotated into risk assets. The index remains on track for its best week since April, reversing earlier losses tied to the conflict’s initial escalation.