CAC 40 Declines, Dragged Down by Auto Sector Amid Soaring Oil Prices

A Morning of Geopolitical Tension

The Paris market has been trading in the red since opening, not excessively but with clear prudence. The backdrop remains dictated by the Middle East: following new American strikes on Iranian targets and reported incidents at the exit of the Strait of Hormuz, Brent crude surged by over $4 the previous day and is trading around $95, the highest since late July. This surge in energy prices reignites fears of a lasting increase in transport and production costs.

The climate is hardly more positive elsewhere in Europe. On Wall Street, major indices had already closed lower on Tuesday evening: the S&P 500 dropped 0.71% at the close of Tuesday, September 1, the Dow Jones 0.79%, and the Nasdaq 100 1.29%. This start of September is therefore opening on a defensive note, with the Paris market this morning having 29 declining stocks against only 10 advancing.

Carrefour, L'Oréal and Semiconductors Hold Steady

In a predominantly bearish market, a few stocks are standing out. Carrefour leads the CAC 40 with a gain of 1.28% at 16.21 euros. L'Oréal follows with an increase of 0.94% at 382.90 euros, boosted by BNP Paribas Exane's upgrade from « neutral » to « outperform, » and its price target raised from 439 to 460 euros.

Semiconductors also remain well positioned: STMicroelectronics is up 0.84% at 42.66 euros, with Citi maintaining its buy recommendation and raising its price target from 62 to 65 euros. Accor, in turn, gains 0.87% at 46.12 euros, following the announcement of the launch of 380 million euros in convertible bonds due 2032 aimed at redeeming its 2027 OCEANE bonds. Crédit Agricole rounds out the group with an increase of 0.43%, as Crédit Agricole CIB has appointed Dominique Blanchard as the head of its market activities.

The Automobile and Cyclicals Take the Lead

The bottom of the table is dominated by cyclical and economically sensitive stocks. ArcelorMittal shows the biggest decline in the CAC 40, falling 2.32% to 62.26 euros. The steel giant is closely followed by the automotive sector, which is particularly volatile this morning.

Renault drops 2.10% to 28.40 euros, and Stellantis loses 1.85% to 4.55 euros, following a disappointing August: according to French market data, the two manufacturers listed in Paris underperformed despite a 3.6% increase in the market that month. The tense oil environment exacerbates challenges for a sector exposed to costs and demand. Luxury is not spared, with Kering down 1.42% to 243.70 euros, while Michelin falls 1.35% to 34.41 euros. The day's dispersion illustrates a two-tier market, with sought-after defensive stocks and neglected cyclical ones.