CAC 40 Closes Higher Amid Geopolitical Tensions and Sector Shifts

The French benchmark rose 0.12% to finish the session at 8,243.47 points, with an average volume of €3.424 bn.

Paris’ market turned positive after a volatile morning marked by escalating geopolitical frictions. After targeting Venezuela and Greenland, former U.S. President Donald Trump’s rhetoric shifted toward Russia, adding fresh uncertainty to global markets.

Sector‑specific re‑ratings steered the rally. UBS upgraded BNP Paribas to a buy, lifting the stock 3.51% to €82.50 and nudging its price target from €77.40 to €103.00. Banking stocks led the gains, with Société Générale up 1.82% at €70.38 and Crédit Agricole rising 1.44% to €17.57.

Key Futures Levels (January Contract)

Resistance zones: 8,157.5 – 8,177.5, 8,193, 8,218 – 8,285.5, 8,329.5, 8,408.5.

Support zones: 8,143, 8,117 – 8,055.5, 7,991, 7,926.5 – 7,910.5, 7,897, 7,859 – 7,830, 7,765.

The intraday bias stays bullish above the 8,198‑point threshold.

Technical Outlook

At the 2 pm snapshot, the CAC 40 future broke out of its previous trading range, posting three consecutive closes above the upper band since late November. The index also cleared the intermediate resistance at 8,177.5 points.

However, a sustained rally will likely require stronger buying pressure, preferably backed by a more favorable geopolitical backdrop or fresh macro‑economic catalysts. The next decisive hurdle sits at 8,285.5 points; a three‑day close above this level could open the path toward the upper channel ceiling around 8,408.5 points.

Conversely, a pullback into the 8,177.5 – 8,055.5 zone would signal weakening momentum, potentially driving the index back toward the old range midpoint near 8,106 points. A breach below that level could intensify selling, targeting the 8,055.5 support first and, if breached, the 7,991‑point floor, with the long‑term lower channel around 7,950 points.

Indicator Snapshot

• Price stays above the 20‑, 50‑ and 200‑day moving averages.
• MACD histogram is rising above its signal line.
• RSI hovers in neutral territory.
• Volume is modestly lower than the previous session.

We remain vigilant, ready to adjust our positioning should market conditions deteriorate. Recent U.S. closing candles have been indecisive, so we maintain a 65% exposure to equities in our Dynamic and Investor portfolios, focusing on selective stock‑picking opportunities such as L’Oréal and STMicroelectronics.