CAC 40 Jumps 4.4% at Opening Following Ceasefire in Iran

A Geopolitical Agreement That Shifts Market Dynamics

The overnight announcement of a ceasefire between Washington and Tehran, following more than five weeks of Israeli-American strikes on Iranian territory, sparked a positive shockwave across European markets. President Donald Trump confirmed the agreement, while Iran agreed to commence talks as soon as Friday through Pakistani mediation. The prospect of reopening the Strait of Hormuz, a vital artery for global oil trade, instantly shifted the balance of power in financial markets.

After weeks of heightened tensions — with Brent crude exceeding $111 per barrel just the day before — prices have fallen back below $93, and the sudden de-escalation is reshaping the stock market landscape. The SBF 120 is following suit with a 3.32% increase. Almost all sectors are swept up in this wave of buying. Only three CAC 40 stocks are in the red, and one remains stable at the opening.

ArcelorMittal and Banks Lead the Rebound

The leaderboard of increases reflects a renewed appetite for cyclical and industrial stocks, which are most sensitive to the prospects of geopolitical stabilization. ArcelorMittal leads the CAC 40 with a significant rise of 12.71% to 51.44 euros. The steel giant, heavily exposed to global economic cycles, is reaping the benefits of hopes for easing tensions in international trade.

The banking sector is also showing robust performance. Société Générale is up 8.20% to 69.91 euros, while BNP Paribas gains 7.38% to 89.90 euros. Financial stocks, traditionally correlated with macroeconomic confidence, are attracting buying interest.

Saint-Gobain follows this trend with an increase of 8.01% to 76.58 euros. Stellantis, whose stock remains low at 6.77 euros, rebounds by 7.05%. These gains signal a massive recovery movement in stocks that had suffered the most from geopolitical instability in recent weeks.

TotalEnergies Falls Sharply, Reflecting Ceasefire Impact

Downside of de-escalation: TotalEnergies drops significantly by 5.60% to 74.82 euros. The oil major faces the logical correction related to the anticipation of easing in crude oil prices. As long as the Strait of Hormuz was under threat, oil stocks served as a safe haven. The announcement of the ceasefire reverses this logic.

Safran loses 1.50% at 283 euros, while Euronext falls 0.56% at 143 euros. The stock market operator also announced that it proposes a dividend of 3.18 euros per share for the 2025 financial year, subject to the vote at the general meeting on May 20. Orange remains stable at 18 euros.

In industrial news, Engie announced it has surpassed the threshold of one gigawatt of battery storage in Europe, with the acquisition of two projects in Spain and the start of construction of a first system in France. The stock rises modestly by 0.69% to 29.23 euros, overshadowed by the spectacular movements dominating the market this morning.

This opening primarily reflects a phenomenon of abrupt relief. However, the ceasefire remains fragile: Israel specified that its operations in Lebanon are not covered by the agreement, and Friday's talks will be crucial to confirm—or not—the path of easing.