The CAC 40 index clawed back losses to close 0.6% higher at 7,767 on Tuesday reaching a near one-month high thanks to renewed hopes that Brussels and Washington will agree a preliminary trade deal before the August?st1 tariff deadline, a pact that reportedly would lock in a 10% baseline levy while carving out exemptions for sensitive sectors such as aerospace and luxury goods. This thaw in US–EU relations has buoyed France’s export champions, LVMH and Airbus have each added 1.5% and 0.9%, respectively, by easing the risk of steep duties on their key markets. Meanwhile, a rebound in crude has lent fresh support to TotalEnergies (2%). Finally, June’s flash PMI for France surprised to the upside, services activity holding above 52.5 and manufacturing stabilizing around 49, suggesting the economy can weather temporary trade headwinds, and encouraging investors to rotate back into cyclical names.