CAC 40 index rises in early trading

Around 9:50 am, the leading CAC 40 index gained 0.53 percent (+41.43 points) to 7,844.76 points. This followed a 0.95 percent increase on Friday, but the index still faced a weekly loss of 1.19 percent, marking its eighth weekly decline in nine weeks.

Energy prices and economic data influence market sentiment

Andreas Lipkow, an analyst at CMC Markets, noted that the decline in energy prices currently outweighs some positive economic statistics. This comes as the North Sea Brent crude oil price fell 0.33 percent to 104.44 dollars, following Donald Trump's announcement of an "energy ceasefire" between Russia and Ukraine, without providing further details.

Oil price drop amid geopolitical tensions

This drop in oil prices occurred despite a series of attacks on Saudi airports and energy infrastructure, one of which caused thirteen deaths on Saturday, the deadliest in the kingdom in ten years. The Houthis from Yemen claimed responsibility on Sunday for "large-scale operations."

Investors focus on upcoming inflation data

John Plassard, head of investment strategy at Cité Gestion Private Bank, said investors seem to be looking beyond the latest Houthi attacks on Saudi Arabia for now. He added that the real test will come this week with the US and European inflation figures.

Expected rise in US inflation

The US inflation rate for September, to be published on Wednesday, is expected to accelerate to 3.6 percent year-on-year, up from 3.4 percent in August, due to fuel prices, according to the FactSet consensus. In Europe, the final inflation figures for September in the euro zone are expected on Friday.

French borrowing costs decline

In the debt market, France's ten-year borrowing rate fell to 4.82 percent, down from 4.87 percent on Friday evening. The automotive sector led the CAC 40, with Renault rising 2.94 percent to 27.26 euros and Stellantis gaining 2.78 percent to 4.12 euros.

Equipment suppliers gain traction

Equipment suppliers Forvia (+3.50 percent to 8.76 euros) and Valeo (+2.26 percent to 13.82 euros) were also in demand. Beijing committed on Friday to reduce its exports of hybrid vehicles to the European Union "by several million units over a four-year period," according to European Commissioner for Trade Maros Sefcovic.

European leaders to decide on trade terms

European leaders are to make the "final decision" at a summit in Brussels this week. Andreas Lipkow noted that a new escalation of the trade conflict thus seems to be avoided, at least for now, and European automakers could be the first beneficiaries.

Luxury sector performs well

The luxury sector was performing well, with Kering (+1.40 percent to 214.35 euros), Hermès (+1.33 percent to 1,300.00 euros), and LVMH (+1.12 percent to 384.15 euros), ahead of the publication of the world leader in the sector's quarterly sales on Monday after the close.

Vallourec announces major contract

Vallourec rose 4.01 percent to 18.60 euros, after announcing a "major contract" with TotalEnergies for the supply of more than 16,000 tons of tubes intended for the Absheron gas field in Azerbaijan. The specialist in seamless tubes did not disclose the contract amount.

TotalEnergies declines following oil price drop

TotalEnergies fell 0.34 percent to 78.26 euros, following the oil price decline.