CAC 40 Jumps Nearly 2% as Oil and G7 Energize Paris Stock Market

A Massive Rebound Fueled by G7 Signals on Oil

Tuesday's session in Paris marked a sharp contrast to recent turbulence. The CAC 40 rose nearly 2%, once again surpassing the 8,000-point mark in a rally shared by major European markets. Germany's DAX gained 2.47%, London's FTSE 100 advanced 1.63%, while in Asia, the Nikkei 225 closed up 2.88% and the Hang Seng ended at +2.17%.

The main catalyst for this upturn was the coordinated statement by G7 countries on Monday, expressing their readiness to tap into strategic oil reserves to curb the surge in prices. This announcement, combined with remarks from Donald Trump suggesting a potential end to the conflict, was enough to partially relieve the pressure on markets after sessions marked by historically high volatility in crude oil. Brent and WTI had recorded intra-day fluctuations of about 30% in the previous session—an extremely rare amplitude that had unsettled investors. Ultimately, it fell by 10%.

Despite this, the mood remains cautious. The VIX, a barometer of market anxiety, is at 29.49, up more than 24% over the past few days. This level reflects a persistent tension beneath the surface of the rebound.

ArcelorMittal, Banks and Tech: The Rally is Broad-Based

The rebound is remarkably widespread: 37 out of the 40 CAC stocks are rising, and only three are showing a decline. This indicates a session of widespread relief rather than a targeted sector movement.

Leading the pack, ArcelorMittal jumps 5.93% to 48.77 euros, as the steelmaker fully benefits from the renewed appetite for cyclical stocks. Following closely, the banking sector is making strong gains. Société Générale surges 4.94% to 68.82 euros, while BNP Paribas climbs 3.59% to 88.39 euros. For the latter, JP Morgan raised its price target from 105 to 106 euros, with an “overweight” recommendation.

In the tech sector, STMicroelectronics rises 4.21% to 28.85 euros. The stock gets a boost from Deutsche Bank, which initiated a buy recommendation with a target set at 32 euros, up from 28 euros previously.

In the luxury sector, Kering advances 3.42% to 263.45 euros, swept up in the general upward trend without any specific catalyst identified.

TotalEnergies Goes It Alone in the Red

The contrast is striking: in such a predominantly green session, the few declines can be counted on one hand. TotalEnergies drops 1.48% to 67.87 euros, as the oil major faces the mechanical effects of the G7's potential release of strategic oil reserves and a drop in oil prices.

Euronext, the operator of the Paris Stock Exchange, slips 0.64% to 140.20 euros, while Orange gives up 0.23% to 17.09 euros. These declines remain marginal and do not undermine the decidedly positive tone of the day.

Danone (+0.14% to 69.30 euros) and Pernod Ricard (+0.53% to 72.72 euros) are among the relative laggards of the session, but their changes are nearly negligible. Defensive stocks are naturally overlooked in favor of cyclicals in this type of market configuration.

The rest of the afternoon will reveal whether this rebound, fueled by hopes for an easing in energy prices, can withstand a VIX that remains firmly anchored in the tension zone.