CAC 40 Holds Steady at Around 8,476 Points Amid Oil Price Easing

A Parisian Session Caught Between Washington and the Gulf

The atmosphere in Paris is that of a mixed market. On one hand, the drop in crude oil prices following Wednesday's signing of a memorandum of understanding between Washington and Tehran to end the conflict and reopen the Strait of Hormuz eases short-term inflation expectations and supports some cyclical sectors. On the other hand, the Federal Reserve's decision to maintain the federal funds rate at 3.50–3.75% on Tuesday, along with a « dot plot » now pointing toward a possible increase by the end of the year, weighs on the stocks most sensitive to long rates.

The contrast is clear with other markets. The DAX is up by 0.7% in Frankfurt, while the FTSE 100 drops by 1.08% in London, hampered by the weight of major oil companies in its index. At the close of the previous day, the Dow Jones had fallen by 0.84%, and the Hang Seng finished down by 2.32%. The European STOXX 600 is down slightly by 0.28%, highlighting the relative resilience of the Parisian sector at midday.

Renault Leads as Automotive and Energy Boost Stocks

The leaderboard of gains is led by Renault, which jumped 3.29% to 27.92 euros. The automaker finalized the 100% acquisition of Flexis by buying out the shares of Volvo Group and CMA CGM and confirmed the launch of the Trafic Van E-Tech Electric by late 2026 in Sandouville. The stock also benefits from the launch of Valeo’s 48V two-speed electric axle, co-developed with Renault and selected by Dacia for its Duster, Bigster, and Striker.

Sanofi gained 2.07% to 74.86 euros, following European laboratories. TotalEnergies rose 1.81% to 71.61 euros, after the group presented MethaneLive, its global real-time methane emissions monitoring center, at VivaTech. The French major holds its position despite the drop in Brent crude, which slipped below 78 dollars following the passage of eight ships (including three Saudi supertankers) through the Strait of Hormuz.

Stellantis rose 1.2% to 5.64 euros, supported by the announcement of a partnership with Wayve and Uber on level 4 autonomous robotaxis. Thales rounds out the list with a 1.07% increase to 235.10 euros, as defense remains a strong theme on the Paris stock exchange.

Luxury and Real Estate Weigh on the Index

On the downside, L'Oréal fell by 1.68% to 381 euros, marking the biggest drop in the CAC 40, despite the announcement of acquiring a majority stake in the Indian company Innovist and the alliance with OpenAI on the GPT-Rosalind model. The luxury sector as a whole declined, with Kering losing 1.37% to 272.75 euros.

Unibail-Rodamco-Westfield lost 1.53% to 97.94 euros, illustrating the pressure from expectations of prolonged high interest rates on listed real estate. EssilorLuxottica dropped 0.68% to 176.40 euros, despite its agreement with Applied Materials in the smart glasses sector. Vinci slipped 0.65% to 129.80 euros following the release of mixed traffic figures for May, with a slight rebound in highway traffic but a still negative annual cumulative total.