CAC 40 Closes Lower, Weighed Down by Middle East Tensions and Decline in Luxury and Tech

Prevailing Tensions: Geopolitics Weighs on Markets

The Paris session was dominated by a clear resurgence of risk aversion. The VIX index, a volatility barometer, rose to 25.78 points, up 6.66%, indicating palpable tension in global markets. In the background, Tehran's announcement of a possible toll on tankers passing through the Strait of Hormuz—a strategic point in the global oil trade—fueled concern. The ceasefire between Washington and Iran, announced in recent days, appears extremely fragile: talks are scheduled for tomorrow in Islamabad, but the conditions set by each side make the outcome uncertain.

In this context, divergence among CAC 40 stocks was notable: only 13 stocks closed in positive territory, while 27 declined. It was a session where caution clearly prevailed, with investors opting for a defensive stance amid increasing signals of uncertainty. The SBF 120 followed the same trend, also falling 0.51% to 6,225.16 points.

TotalEnergies and Defensive Stocks Lead: Energy and Safe Havens Hold Up

In a market dominated by geopolitical fears, it's no surprise that the energy sector stood out. TotalEnergies recorded the biggest increase in the CAC 40, rising by 2.21% to 78.51 euros. The Iranian threat to the Strait of Hormuz, through which a significant portion of the world's oil transits, has reignited tensions in crude prices, a traditionally favorable environment for major oil companies.

Air Liquide was also among the few sought-after stocks, with a gain of 1.58% to 186.34 euros. The industrial gas giant once again played its role as a defensive stock in a stressed market. STMicroelectronics advanced by 1.55% to 32.69 euros, while Euronext gained 1.13% to 143.70 euros, supported by the recent release of its March 2026 trading volumes and the announcement of a dividend of 3.18 euros per share for 2025. Engie rounded out the list of gainers (+1.04% to 29.20 euros), with the company recently announcing it had surpassed the milestone of one gigawatt of battery storage in Europe.

Capgemini, Publicis, LVMH: Tech, Advertising, and Luxury Heavily Penalized

The bottom of the chart was particularly harsh. Capgemini suffered the biggest drop of the day, plunging by 5.25% to 97.78 euros, thus falling back below the symbolic 100-euro mark. Publicis Groupe was not spared either, with a decline of 4.75% to 71.44 euros, despite the recent announcement of its extended strategic partnership with Microsoft centered around generative AI. Dassault Systèmes fell by 4.37% to 16.87 euros.

Luxury was also significantly affected: LVMH dropped by 3.15% to 483.15 euros, confirming investors' cautiousness towards the sector amid the current global economic uncertainties. Airbus lost 2.82% to 170.32 euros, ranking among the top five decreases of the day. Overall, stocks exposed to global growth and discretionary spending were the first to bear the brunt of this renewed caution.