CAC 40 Resists Oil Surge Following U.S. Strikes in Iran

A Paris Trading Session Under Geopolitical Influence

The atmosphere in Paris is dictated by the renewed tensions in the Middle East. Following a new wave of American strikes on Iranian targets over the weekend and claimed retaliations against American bases in Kuwait and Bahrain, oil prices have sharply increased. Brent crude jumped around 4% to about $79 per barrel, while WTI surpassed $74, with each side claiming control of the Strait of Hormuz, through which nearly 20% of the world's oil and LNG passed before the conflict.
This energy risk premium is impacting all European markets. The DAX is up by 0.31%, the FTSE 100 is inching up by 0.04%, while the STOXX 600 is virtually unchanged at -0.01%. In Asia, the Nikkei 225 plummeted heavily (-1.92%) at the close, weighed down by the double burden of expensive oil and a weak yen: Japanese wholesale prices reached their highest rate in June in over three years (+7.1% year-on-year), driven by a 22.8% surge in fuel prices.

Energy, Telecoms, and Healthcare Drive the Market

Unsurprisingly, the rise in crude oil propels TotalEnergies to the top of the list, with the oil major advancing by 1.62% to 69.49 euros. It is narrowly surpassed by Orange, which is up by 1.89% to 16.17 euros, with the telecom operator confirming its status as a favored defensive asset during turbulent sessions.
Capgemini gains 1.24% to 90.06 euros, while Veolia Environnement progresses by 0.91% to 36.61 euros. Sanofi also advances by 0.91% to 76.92 euros, buoyed by significant regulatory news: the FDA has approved Sarclisa Escena, the first cancer treatment administered via a portable injector, aimed at treating multiple myeloma. The laboratory thus marks a world first in automated oncology devices.

Defense, Spirits, and Materials Lagging

At the bottom of the rankings is Pernod Ricard, down 1.15% to 63.46 euros, followed by Saint-Gobain (-1.03% to 75.02 euros) and EssilorLuxottica (-1.02% to 169.65 euros). The defense sector, once a strong performer, is also suffering: Safran sheds 0.83% to 333.30 euros after Citi changed its rating to « neutral, » despite raising its price target from 305 to 315 euros. Thales falls 0.81% to 221.50 euros, as Morgan Stanley downgraded its rating to « market weight » with a significantly lowered target, from 280 to 253 euros.
Across the Atlantic, Wall Street closed Friday with mixed results but showed an upward trend, with the S&P 500 gaining 0.42% and the Nasdaq 0.29%, providing a support level that is currently limiting the pressure on European indices despite the geopolitical shockwave.