CAC 40: Paris Stock Market Rebounds, Boosted by Oil Easing and Semiconductors

European Session Boosted by Easing Tensions in the Strait of Hormuz

The atmosphere is decidedly constructive in the markets of the Old Continent. The German DAX is advancing by 0.74% to 24,924 points, the London FTSE 100 is gaining 0.76%, and the STOXX 600 is progressing by 0.74%, illustrating a uniform movement across Europe. In the background, the gradual return to normal of oil flows through the Strait of Hormuz is changing the mood of traders: according to U.S. authorities, at least 20 million barrels have exited the strait in the past 24 hours, and several previously blocked tankers have resumed their routes.

Brent crude is falling to around $72.50 a barrel, returning to its lowest levels since the end of February. This disinflation of the geopolitical risk premium is evident in the very favorable distribution of the CAC 40: 31 rises against only 9 declines, indicating a broad movement rather than an isolated sector rotation. On the American side, the picture is more mixed, with the Dow Jones up by 0.35% but the Nasdaq down by 0.43%, a sign that the rotation towards European cyclical stocks is in full play this afternoon.

Semiconductors, Hospitality, and Luxury Leading the Way

Leading the Paris rankings, STMicroelectronics soared by 4.18% to 66.01 euros. The Franco-Italian group announced the launch of the ST54M, a secure chip incorporating a hardware accelerator for post-quantum cryptography, aimed at smartphone manufacturers facing new security requirements in the quantum era. The strong results of Micron Technology across the Atlantic have sparked renewed interest in the sector.

Right behind, Accor gained 3.52% to 51.80 euros as Barclays raised its price target from 53 to 62 euros, reiterating an « overweight » rating on the hotel group. The luxury sector also contributed to the rebound, with Kering rising 2.07% to 270.85 euros. European industrial and energy-related stocks followed suit: Saint-Gobain appreciated by 2.05% to 81.48 euros, and Engie by 1.92% to 27.01 euros, in a context where the easing of energy costs provides natural support for the continent's transformers and utilities.

Defense and Energy Facing Downturn, Bucking the Trend

The downside is reflected in the bottom of the rankings. Thales falls by 2.40% to 219.90 euros, as the stock faces significant profit-taking due to geopolitical easing in the Middle East, reducing the premium that had been granted for several weeks to European defense groups. EssilorLuxottica declines by 2.22% to 164.85 euros and Publicis Groupe drops by 1.39% to 86.86 euros.

The energy sector is understandably among the day's losers: TotalEnergies falls by 1.11% to 68.74 euros, following the drop in oil prices, despite announcing its 10% stake in the Bab gas concession in Abu Dhabi, which aims for a target capacity of 1.5 billion cubic feet per day.

Bureau Veritas loses 0.87% to 26.06 euros, even though the group communicated about the requalification of a North Sea pipeline for CO₂ transport, a first in the Abeona carbon capture and storage project in the Netherlands. Mid-session, the Parisian picture remains one of a market taking a breather, amid lower oil prices and rather favorable micro-catalysts.