CAC 40: Oil Skyrockets, Banks Plummet, Paris Torn Between Two Worlds

A Session Under High Geopolitical Tension

The day was marked by a particularly heavy geopolitical context. Following the previous day's false hopes for a truce, the Iranian denial and the continuation of hostilities in the region abruptly drove the Brent crude price back up to around 108 dollars per barrel, compared to less than 100 dollars twenty-four hours earlier. This extreme volatility in the energy market immediately impacted the Paris stock exchange.

The VIX, an indicator of market nervousness, was at 25.25 points—a level indicating persistent tension, though down by 17.5% from the previous day. The dispersion within the leading index perfectly illustrated this split session: 21 stocks closed higher while 19 fell, with none remaining stable. Rarely have sector disparities been so pronounced in a single session.

Oil and Energy, Big Winners of the Day

TotalEnergies emerged as one of the session's key drivers, with an increase of 2.40% to 79.42 euros. The oil giant benefited from both the surge in crude prices and a double positive signal from analysts: JP Morgan raised its price target from 75 to 86 euros while maintaining its « overweight » recommendation, and Citi did the same by raising its target from 75 to 90 euros with a « buy » rating. Engie also stood out, gaining 2.01% to 28.97 euros, following the energy sector.

At the top of the leaderboard, Stellantis posted the largest gain in the CAC 40 with a jump of 3.97% to 6.57 euros. Eurofins Scientific rose by 2.83% to 66.90 euros, while Euronext gained 2.07% to 143.30 euros. These three stocks helped limit the decline of the index.

Banks and Heavy Industry Penalized

Conversely, bank stocks weighed heavily on the market. Société Générale fell 2.61% to 64.24 euros, while BNP Paribas dropped 2.44% to 83.30 euros. These two giants of the sector registered the steepest declines in the index, following STMicroelectronics, the day's biggest loser with a 2.84% decrease to 29.09 euros.

Industrials were not spared. Saint-Gobain lost 2.30% to 70.52 euros, and ArcelorMittal fell 2.14% to 45.66 euros. These declines in the materials and steel sectors reflect the prevailing nervousness regarding industrial prospects amid revived geopolitical tensions.

At the end of the day, the SBF 120 closed down 0.21% at 6,033.09 points, confirming a moderate but widespread decline beyond the CAC 40 alone. On Wall Street, the Dow Jones and the S&P 500 were moving without clear direction at the start of the American trading session, awaiting clearer signals on the evolution of the conflict in the Middle East.