The CAC 40 rose 0.4% to close at 8,206 on Monday, lagging EU peers as steep bank losses pared most gains in defense and select corporates as easing US–China trade tensions supported broader sentiment. BNP Paribas tumbled 7.7% after a $20.75 million US jury verdict over its alleged role in Sudan atrocities and dragged AXA, Credit Agricole, and Societ Genrale over 0.5% lower. However, Kering surged 4.8% after agreeing to sell its beauty arm to L’Oreal for €4 billion, with L’Oreal up 1.2%. Defense led sectoral gains after reports President Zelensky failed to secure US Tomahawk missiles, leaving Europe as his primary rearmament option. Thales rebounded 3.7% as conflict reignited in Gaza, while Airbus added 1.7% after IndiGo finalized a 30-plane A350 order. Sentiment was buoyed by Trump’s softer trade tone and receding US banking fears, though S&P’s downgrade of France on fiscal risks and uncertainty over Ukraine funding at Thursday’s EU summit clouded the outlook.