CAC 40: Banking Stocks Drag Down Index, Stellantis Plummets Nearly 8%

A Parisian session defies the trend of other European markets

Paris is lagging behind in Europe this Thursday morning. The German DAX is inching up by 0.13% and the London FTSE 100 is rising by 0.84%. Conversely, the SBF 120 is dropping by 0.78%, following the lead of Paris's main index. The backdrop remains heavy: the surge in Brent oil, which hit $126.41 in the morning before retreating to $124.64—its highest level since March 2022—continues to weigh on market sentiment. The prolonged blockade of the Strait of Hormuz is fueling fears of a lasting energy shock, now adding to European quarterly reports.

In Asia, markets closed in decline, with the Nikkei falling by 1.06% and the Hang Seng by 1.28%, confirming the cautious tone prevailing since the Paris opening.

Engie Leads the Way, Boosted by Belgian Nuclear Agreement

Among the few stocks on the rise, ENGIE leads the pack with a 2.32% increase to 27.37 euros. The share is bolstered by the announcement of a letter of intent signed with the Belgian state and Electrabel, paving the way for exclusive negotiations regarding Belgium's purchase of the company's entire nuclear activities in the country, which includes seven reactors and their associated assets and liabilities.

Following behind, Veolia Environnement rises by 1.87% to 35.46 euros, while Thales gains 1.35% to 233.20 euros amid a geopolitical environment keeping defense stocks in the spotlight. Bureau Veritas (+1.24%) and Capgemini (+1.17%) round out the top five, albeit in more modest proportions.

Stellantis Penalized, French Banks Plunge as a Group

The session is dominated by the plunge of Stellantis, which drops by 7.73% to 6.13 euros. The automaker has nevertheless returned to profitability in the first quarter of 2026, posting a positive net income of 400 million euros and a revenue increase of 6% to 38.1 billion euros. The market's focus remains on ongoing profitability challenges and geographical disparities, particularly in the Asia-Pacific and South America regions. Renault, which had surpassed Stellantis in market share in March, also falls by 2.21% to 29.21 euros, in line with the automotive sector.

The banking sector is the other big loser of the morning. Crédit Agricole drops 6.30% to 16.14 euros, on the same day the group announced the repayment of its AT1 bonds in sterling on June 23, 2026. Société Générale loses 5.75% to 66.91 euros and BNP Paribas sheds 4.50% to 86.44 euros. The three major French banks collectively account for a substantial part of the midday decline in the index and set the tone for a generally defensive session.