CAC 40 Drops Below 8,200 Points, Paris Stock Market Dragged Down by Luxury Sector and Middle East Tensions

A Session Under High Geopolitical Tension

Thursday's session in Paris is directly influenced by the current events in the Middle East. Tehran's announcement of a possible passage fee for oil tankers passing through the Strait of Hormuz—a strategic point through which a major portion of the world's crude trade transits—has immediately heightened the tension on European markets. According to the Financial Times, Iran is considering imposing this fee in cryptocurrency, as a way to circumvent Western financial sanctions.

Meanwhile, the ceasefire announced between the United States and Iran remains extremely fragile. Talks scheduled for April 10 in Islamabad are under threat: Tehran has called the conditions « unreasonable » following Israeli strikes in Lebanon. Iran demands that any truce should also include the Lebanese theater, which Israel refuses. This uncertain environment is reflected in the VIX, the volatility index, which jumped 6.66% to reach 25.78, indicating high nervousness in the markets. The SBF 120 follows the same trend, dropping by 0.85% to 6,203.76 points.

Luxury in the Spotlight, Energy Sector Holds Steady

In terms of declines, the luxury sector is experiencing the heaviest losses. LVMH drops 3.98% to 479 euros, marking the largest decrease in the index this morning. Kering falls by 2.31% to 270.85 euros, in a broad sector movement reflecting concerns over global consumption in a deteriorating geopolitical context. Additionally, TD Cowen has raised its price target on Kering from 275 to 300 euros, while maintaining its « hold » recommendation.

Outside of luxury, EssilorLuxottica declines by 2.39% to 195.90 euros, following Goldman Sachs' significant reduction of its price target from 350 to 265 euros, while keeping its buy recommendation. Airbus sheds 2.49% to 170.90 euros, and Dassault Systèmes loses 2.52% to 17.20 euros, in a retreat affecting both industry and technology.

Conversely, the energy sector is standing out positively. Tensions around the Strait of Hormuz are supporting oil and gas stocks. TotalEnergies rises by 0.95% to 77.54 euros. Engie gains 0.83% to 29.14 euros, as the group recently surpassed the gigawatt threshold for battery storage in Europe. Air Liquide, a quintessential defensive stock, appreciates by 1.19% to 185.62 euros.

Euronext Leads the Gains, Bouygues Provides Subtle Support

The largest increase in the CAC 40 at midday goes to Euronext, which is up 1.34% to 144 euros. The stock exchange operator is benefiting from favorable news after having published its March 2026 trading volumes, with 29% of European stocks traded on its platforms. Additionally, the group has proposed a dividend of €3.18 per share for the 2025 fiscal year, subject to approval at the upcoming general assembly on May 20.

Bouygues is modestly gaining 0.34% to 52.62 euros, rounding out a rather weak set of increases. With only 11 stocks in positive territory out of 40, the session remains clearly dominated by risk aversion as the market awaits diplomatic relief in the Middle East.