The CAC 40 rose 0.9% to close at 7,803, recovering from two consecutive sessions of losses as markets pared back expectations for ECB rate hikes. Money markets now price in a deposit rate of 2.72% by December, up from the current 2.50%, and 3.20% by late 2027. Gains were broad-based, with BNP Paribas up 0.8%, Safran rising 1.7% and Schneider Electric adding 2%. Luxury stocks also advanced, with Hermes up 1.6% and Kering gaining 2.3%. Domestically, French markets have faced mounting pressure as investors weigh the country’s debt burden, fiscal deficit and political uncertainty ahead of the 2027 presidential election.