The CAC 40 rose 0.5% to 8,553 on Monday, extending last week's gains and reaching a fresh four-month high, as investors shifted their attention to the upcoming earnings season.
Investors also digested a fresh round of PMI releases across Europe for further clues about the strength of the economy.
In France, the Construction PMI fell to 38.2 in June 2026 from 39.6 in May, remaining firmly in contraction territory and underscoring the prolonged weakness in the sector, which has been shrinking for four consecutive years.
Luxury stocks led the advance, with LVMH rising 1.4%, Hermès gaining 1.4%, and Kering adding 1.9%.
Elsewhere, Thales advanced 0.7% after agreeing to acquire a stake in Exail Technologies.
On the downside, STMicroelectronics lost 1.8%, mirroring broader weakness in technology shares as investors grew more cautious about valuations amid concerns that substantial AI-related spending may take longer to generate meaningful returns.