The CAC 40 index opened flat before ticking up 0.39% to 8,541 points in early Monday trading, signaling a cautious start to the week for European equities.

Despite a slight easing in geopolitical tensions, market participants remain hesitant, weighed down by contradictory forces that are limiting upside momentum.

Skepticism toward technology stocks continues to drag on sentiment, while investors digest evolving expectations regarding monetary policy.

The index’s modest gain reflects a market in wait-and-see mode, with traders balancing the relief from reduced geopolitical risk against structural concerns in key growth sectors.

This cautious stance follows a period of resilience for the Paris benchmark, which previously maintained positive footing despite sharp declines in US and Asian markets.

Global investors have been pulling back from artificial intelligence-related names, a trend that is now filtering through to European tech-heavy indices.