The CAC 40 rose 1% to close at 7,871 on Friday ending a two session losing streak as in-line US inflation data reassured investors and revived hopes of further Fed rate cuts. Traders remained cautious amid new tariff threats and lingering geopolitical tensions after President Trump said that from October 1st pharmaceuticals 100% trucks 25% and furniture 30% imported from abroad will face tariffs unless production is relocated to the US while the European Commission said it secured a 15% cap on US pharmaceutical tariffs under the US EU trade agreement and a 15% duty on EU autos and parts from August 1st. Financials led the market with AXA (1.8%), BNP Paribas (2.2%), Credit Agricole (2.5%), and Societe Generale (1.4%) posting strong gains, while ArcelorMittal rose 2.6%, EssilorLuxottica 2.1%, and Schneider Electric 1.8%. The index loosely posted a third straight weekly gain.