CAC 40 Starts the Week Flat
The CAC 40 index closed at 7,708 on Monday, showing a slight increase as markets remained cautious ahead of a confidence vote and US economic data. France's manufacturing PMI rose to 50.4 in August, indicating expansion, but political risks related to the September 8 vote and rising input costs in manufacturing are concerning. Major companies like Airbus and Stellantis saw gains, while Hermès and Thales experienced declines.
The CAC 40 index edged marginally higher to close at 7,708 on Monday, as markets turned cautious ahead the confidence vote and US data later this week.
France’s manufacturing PMI unexpectedly returned to expansion at 50.4 in August from 48.2 in July, with employment rising at the fastest pace in over three years and contractions in output and new orders easing.
On the negative side, political and fiscal risk has risen ahead of the September 8 confidence vote called by Prime Minister François Bayrou over his contested 2026 budget measures, prompting markets to reprice a higher risk premium.
Adding to the pressure are rising input cost inflation in manufacturing, weaker export momentum, particularly to the United States, and global rate cues with a key US jobs report due later in the week, leaving the net effect muted.
Several large caps such as Airbus, Stellantis, and Société Générale gained between 0.7% and 1.6%, while Hermès, Thales, and ENGIE slipped between 0.5% and 1.3%.
