CAC 40 holds firm as investors brace for ECB's pivotal policy decision
The CAC 40 has shown resilience in recent trading, holding above a key support level as investors await the European Central Bank's (ECB) policy meeting. With volatility expected to stay high ahead of the February 5 decision, the index closed last week at 8,126.53 points, marking a modest gain of 0.68% on Friday alone. Over the past year, the benchmark has fluctuated between sharp highs and lows, reflecting shifting market sentiment.
The French stock market's main index has defended the 8,070-point zone, a level traders see as crucial. A break above 8,200 could push it toward January's all-time peak of 8,400.50. For the week ending January 30, 2026, the CAC 40 settled at 8,181 points, a 4.15% rise from its January 2025 close of 7,950.17. Its 2026 high so far stands at 8,396.72, while the low dipped to 7,996.59. Over the past 52 weeks, the index has ranged from 6,863.02 to 8,362.09.
Several major French companies posted strong gains last week. BNP Paribas rose 1.9% to €91.20, while Société Générale climbed 2.8%. Sanofi led the way with a 2.75% surge to €79.20, buoyed by a 13% jump in fourth-quarter revenue. Meanwhile, Publicis is set to release its quarterly earnings on Monday, which could further influence market movement.
France's economy grew by 0.2% in the final quarter of 2025, providing a steady backdrop for equities. Yet traders remain cautious, with the ECB's upcoming meeting likely to shape near-term direction.
The CAC 40's ability to hold above 8,070 suggests underlying strength, though its next move hinges on the ECB's policy signals. If the index clears 8,200, it may retest January's record high. For now, investors are watching corporate earnings and economic data for further clues on market momentum.
