CAC 40 Rises 2.3% As US-Iran Peace Deal Hopes Lift Sentiment

(RTTNews) - The French stock market's benchmark index CAC 40 jumped more than 2.3% Friday morning with investors going on a buying spree amid rising hopes of a U.S.-Iran peace deal following U.S. President Donald Trump calling off previously planned attacks on Iran. Oil's sharp drop contributed as well to the upbeat mood in the market.

Brent crude futures dropped to $85.80 a barrel before edging up to $86.51, still trailing previous close by about 4.3%.

Trump said a "great settlement" to end the conflict with Iran has been reached, and that a signing ceremony could take place in Europe as early as this weekend.

However, Tehran said no final deal has been approved and that disputes over frozen funds and Strait of Hormuz security remain unresolved.

The CAC 40 was up 184.93 points or about 2.25% at 8,385.73 a few minutes ago.

Kering moved up 6.3%, while Stellantis and Societe Generale both climbed nearly 6%. Saint Gobain advanced 5.8%, while Accor, Hermes International, ArcelorMittal, Safran, BNP Paribas and LVMH gained 5%-5.55%.

EssilorLuxottica, Renault and Airbus moved up 4%-4.75%. Michelin, Eiffage, Vinci and Credit Agricole climbed nearly 3%.

L'Oreal, Pernod Ricard, Bouygues, STMicroelectronics, Publicis Groupe, Danone, Schneider Electric, Unibail Rodamco, Air Liquide, AXA, Bureau Veritas and Eurofins Scientific also posted strong gains.