The CAC 40 edged up to close at 8,203 on Tuesday on fragile hopes of easing tensions in the Middle East. The White House suggested that a deal to end the more than three-month-old conflict with Iran could be reached within days, improving risk sentiment. Oil prices and bond yields declined, easing concerns about inflation and higher interest rates. However, the situation remained fragile, with the Strait of Hormuz effectively closed and Israel continuing strikes in Lebanon. In Europe, attention also turned to the ECB’s policy meeting on Thursday. While a quarter-point rate hike is expected, markets are focused on signals regarding the policy outlook as elevated energy prices continue to pose inflation risks. Luxury stocks rose, with LVMH rising 2%, L'Oreal adding 1.6%, and Hermes gaining 1.3%, while AXA added 1.2%. In contrast, TotalEnergies fell 1.1% as oil prices fell. STMicroelectronics shed 5.8%, tracking weakness in tech shares as investors took profits following recent rallies.