France: CAC 40 Sets Fresh Record.

The CAC 40 advanced 0.8% to close at a fresh record of 8,429 on Wednesday, as easing inflation and continued strength in defense and financial stocks underpinned broader market sentiment. France’s annual inflation rate slowed to 0.3% in January, its lowest level since late 2020, reinforcing expectations that the ECB can maintain a supportive policy stance. Defense and aerospace shares led the gains, with Thales surging 4.3%, while Airbus (2.1%) and Safran (1.9%) also moved higher on sustained rearmament momentum and strong order backlogs. Financials added to the advance, including Societe Generale, BNP Paribas and Credit Agricole adding between 1.4% and 3.4%, while consumer-facing and defensive names lagged, with Carrefour tumbling 4.8% after reporting weaker operating profit.