CAC 40 Holds Steady Despite Threat of Oil Shock in the Middle East

A Session Shaped by Geopolitical and Energy Factors

The mood remains cautious in Europe, despite slight gains in the indices. The DAX is up 0.30% at 24,921 points, the FTSE 100 rises 0.20%, and the STOXX 600 advances 0.30% to 641.54 points. This contrasts sharply with the Wall Street close the previous day, where the Dow Jones fell 0.59% and the S&P 500 dropped 0.19%. The Nikkei 225, however, soared by 3.26% to 66,232 points.

The backdrop is dominated by renewed tensions in the Middle East. The blockade announced on Monday by Houthi rebels at Bab el-Mandeb, along with the approximately 50% decrease in tanker crossings in the Strait of Hormuz reported by S&P Global Energy, is rekindling fears of an oil shock. On Monday, Brent crude traded between $86 and $91 per barrel, while diesel refining margins in Europe hit a record high of over $65. This energy context largely explains the tone of the Paris session, where defense, oil, and aerospace stocks are leading the market.

Airbus, STMicro, and TotalEnergies Boost the Market

Leading the CAC 40, STMicroelectronics advances by 2.40% to 56.23 euros, driven by renewed interest in European semiconductors.

Airbus gains 1.79% to 195.22 euros, buoyed by particularly intense industrial activity following the Farnborough Airshow. The European manufacturer announced a firm order for 100 A320neo from SMBC Aviation Capital, bringing the total commitments of the Japanese lessor and its parent company Sumitomo Corporation to over 900. Airbus also unveiled, alongside Air Canada, a 13.7 million euro co-investment platform for sustainable fuel in Canada.

The energy sector remains supported by geopolitical tensions: TotalEnergies rises by 1.70% to 72.35 euros. Thales, a flagship of European defense, gains 1.52% to 227.30 euros. Société Générale also follows the upward trend (+1.01% to 75.91 euros), within a firm banking sector.

Tech and Defensive Stocks Struggling

Conversely, technology and certain defensive stocks are in demand during the decline. Capgemini drops 2.16% to 89.60 euros, marking the largest decline on the index, while Dassault Systèmes slides 1.18% to 17.93 euros. Eurofins Scientific falls 1.58% to 69.98 euros, despite Jefferies raising its price target, which remains at « underperform, » increasing its target from 48 to 60 euros.

Pernod Ricard declines by 1.40% to 64.74 euros in a spirits sector that continues to face a challenging consumption environment, and Orange slips 1.22% to 16.24 euros. The day's dispersion remains unfavorable, with 23 declines against 17 advances within the CAC 40, indicating that the slight rise in the index conceals a more mixed session than it appears.