CAC 40 rebounds as tensions rise in the Strait of Hormuz

A Market Breathing Despite Geopolitical Noise

The contrast is striking. While tensions between Washington and Tehran have flared up in recent hours—Donald Trump having directly threatened Iran on Truth Social following the announcement of a potential toll reaching 2 million dollars per ship in the Strait of Hormuz—the Paris Stock Exchange is displaying a bright green this Friday morning. Among the 40 components of the CAC 40, 31 are on the rise compared to only 9 in decline. The dispersion is clear: the market is broadly buying.

This rebound comes after a period of increased volatility, as evidenced by the spectacular drop in the VIX, which has fallen by 18.39% to return to 21.04 points. Although this level remains above the long-term historical average, it indicates a significant easing of short-term fears. The SBF 120 follows the same trend, up 0.52% at 6,274.58 points.

The Iranian announcement, reported by the Financial Times, to require cryptocurrency payment for maritime transit—a first for a state—has not been enough to unsettle European markets at the end of this week. For now, operators seem to be treating these statements as a diplomatic posturing episode rather than an imminent risk to oil supply chains.

STMicroelectronics, Stellantis, and Luxury Stocks Drive the CAC 40 Up

Leading the chart, STMicroelectronics gains 2.78% to reach 33.60 euros, marking the best performance in the index by midday. The Franco-Italian semiconductor manufacturer is boosting the tech sector in its wake.

Stellantis follows with an increase of 2.08% to 6.86 euros, in an automotive sector that is benefiting from the general upward movement. However, the manufacturer remains far from its historic highs.

The luxury sector also contributes to the robust performance of the index. Kering advances by 2.02% to 280 euros, while Hermès rises by 1.74% to 1,782 euros. Steelmaker ArcelorMittal rounds out the top five with a gain of 1.89% to 51.70 euros, within a well-positioned industrial raw materials sector.

The breadth of the rise—nearly eight out of ten stocks in the green—imparts a character of a general rebound to this half-session, rather than a targeted sector rotation.

Thales Slips, Energy Under Pressure

On the downside, Thales shows the largest drop in the CAC 40 with a decline of 2.54% to 261.40 euros. The defense electronics company stands out distinctly in an otherwise predominantly bullish index. The defense and technology group is an exception in a session where risk appetite prevails.

The energy sector also weighs on the index. TotalEnergies drops 0.91% to 78.15 euros, while Engie falls 0.82% to 28.96 euros. This decline might seem counterintuitive at a time when tensions around the Strait of Hormuz — through which a significant portion of the world's oil is transported — are making headlines. However, oil prices have yet to significantly react to this rhetorical escalation.

Orange loses 0.58% to 17.97 euros, and Safran limits its decline to 0.28% at 315.10 euros, among the lower performers but without a notable plunge.

At midday, the character of this Friday session remains that of a market catching its breath after turbulent days, choosing for now to ignore the diplomatic clamor between Washington and Tehran.