CAC 40 Closes in the Red Amid Tensions Following U.S. Naval Blockade Against Iran

A session dominated by geopolitical risks in the Middle East

The Paris market moved under the threat of a major military escalation between the United States and Iran. The implementation on Monday of a U.S. naval blockade targeting ships entering or leaving Iranian ports was the day's key event. This decision, following the failure of more than 20 hours of negotiations between Washington and Tehran under Pakistani mediation, created a cautious atmosphere across all European markets. The SBF 120 followed suit, also closing down by 0.30% at 6,234.19 points.

The prospect of disruptions to shipping routes around the Strait of Hormuz—which handles a significant portion of the world's oil—prompted operators to limit their risk exposure. On Wall Street, the Dow Jones and the S&P 500 were trading at 47,417.27 and 6,775.80 points, respectively, during the Paris close, awaiting further developments in the situation.

Defense and technology lead gains, TotalEnergies supported

In this context of tensions in the Middle East, defense and technology-related stocks have performed well. Dassault Systèmes recorded the largest gain on the CAC 40, jumping 4.31% to 17.54 euros. Thales, a major player in defense and military electronics, gained 2.47% to 265.60 euros, in a sector that mechanically benefits from rising international tensions.

In the digital services sector, Capgemini increased by 2.14% to 102.45 euros. Publicis Groupe advanced by 1.77% to 74.82 euros, following a marginal upward revision of its target price by JP Morgan, which rose from 130 to 131 euros while maintaining its « overweight » recommendation.

TotalEnergies also closed up 1.34% to 79.66 euros. The oil giant benefited from concerns about global energy supply, as the U.S. blockade directly threatens Iranian hydrocarbon exports.

Stellantis, Danone, and Kering Trailing Behind

Conversely, defensive and cyclical stocks suffered the biggest losses of the session. Stellantis fell by 2.77% to 6.70 euros, marking the largest drop of the day. Additionally, the auto manufacturer saw TD Cowen lower its price target from 7.81 to 7.68 euros, while maintaining a « hold » recommendation.

Danone declined by 2.69% to 67.32 euros, among the heaviest sanctions of the day. Veolia Environnement lost 1.60% to 34.54 euros, while Orange dropped by 1.56% to 17.67 euros.

In the luxury sector, Kering fell by 1.59% to 272.05 euros, impacted by a downgrade from Morgan Stanley, which reduced its recommendation from « overweight » to « equal weight » and lowered its price target from 330 to 320 euros. It was a tough day for the owner of Gucci, in a market already reluctant to take risks.

This April 13 session will be remembered for the impact of geopolitics on European markets. The dichotomy between the defense and energy stocks, buoyed by renewed tensions, and the rest of the market, weighed down by uncertainty, shaped the contours of a market in alert mode.