CAC 40 Stalls: Luxury Saves the Day While Bouygues and Capgemini Slide

A Paris Session at Odds with U.S. Records

The atmosphere is considerably more cautious along the Seine than in other global markets. The Nasdaq jumped by 2.02% and the S&P 500 gained 1.46% at the previous close, while the Nikkei 225 soared by 5.58% in Tokyo and the Hang Seng increased by 1.57% in Hong Kong. Meanwhile, Paris is at a standstill, similar to the DAX (-0.15%) and the FTSE 100 (-0.54%). The SBF 120 also declined by 0.25%, and the STOXX 600 fell by 0.22%.

The backdrop remains influenced by the abrupt drop in Brent, which fell below $99 this morning amid hopes for a diplomatic resolution between Washington and Tehran. This reduction in geopolitical risk premium has benefited indices across the Atlantic and in Asia but struggles to impact the Paris exchange, where the disparity reflects a session without a clear direction.

Luxury Leads the Way, Legrand Boosted by Its Results

Leading the index, the luxury sector stands out. Kering climbs 2.77% to 250 euros, followed by Hermès International, which gains 2.12% to 1,707 euros. The tourism sector follows the same trend with Accor rising 1.95% to 45.47 euros.

Legrand advances 1.69% to 162.80 euros after reporting a 11.4% increase in first-quarter revenue to 2.537 billion euros, with a stable adjusted operating margin at 20.7%. However, the publication also indicates a net debt increase to 4.67 billion euros, up from 3.03 billion a year earlier, due to the company's acquisition strategy.

Renault rounds out the top performers with a 1.66% rise to 31.21 euros. The automaker announced the expansion of its Clio range with a new Eco-G 120 hp dual-fuel gasoline/LPG engine.

Bouygues and Capgemini drag down the index, Danone and Pernod Ricard follow

On the downside, Bouygues trails behind with a drop of 2.91% to 51.46 euros after reporting a revenue decline of 1.7% at constant exchange rates in the first quarter, totaling 12.2 billion euros. Nonetheless, the group maintained its current operating profit at 77 million euros and reduced its net debt by 2 billion euros over the year. Meanwhile, the Feronord consortium, including Bouygues Travaux Publics and Colas Rail, secured a railway contract worth 1.2 billion euros in Sweden.

Capgemini loses 2.86% to 101.95 euros, following a 7-year bond issuance of 800 million euros, which was oversubscribed by 2.7 times and carries a coupon of 3.875%. This issuance aims to refinance a loan that matured in April.

The consumer and healthcare sectors are also affected. Danone drops 2% to 63.62 euros, Pernod Ricard falls 1.94% to 64.78 euros, and Sanofi yields 1.69% to 73.38 euros. This combination helps explain why Paris is lagging behind other major global markets this early afternoon.