CAC 40 Surpasses 8,100 Points, Boosted by Easing Oil Prices

A Session Marked by Energy Relief

The atmosphere in Paris this Monday is shaped by a favorable external context. Oil prices are falling by about 2% this morning, with Brent returning to around $101.71 per barrel and WTI at $98.15, the lowest since September 10. Markets are betting on a possible de-escalation between Washington and Tehran during the UN General Assembly. This drop in crude eases pressure on the most energy-consuming sectors and boosts investor morale.

This relaxation, however, fits within a more tense monetary environment: the Fed, the Bank of Japan, and the ECB have raised their key interest rates over the past week, amid heightened vigilance against inflation related to the energy shock. In Europe, the trend remains positive: the DAX is up 1.05% and the STOXX 600 is up 0.97% during the session, while the FTSE 100 is gaining 0.85%. On Friday evening on Wall Street, the S&P 500 ended up 0.17% and the Nasdaq 100 rose by 0.67%, while the Dow Jones slipped 0.18%.

Technology, Industry, and Banks Lead the Way

Leading the CAC 40, STMicroelectronics rises by 3.79% to 45.02 euros, marking the index's largest gain. The semiconductor company is closely followed by Schneider Electric, which increases by 3.17% to 294.80 euros, and Legrand, up by 3.02% to 139.90 euros. For this latter stock, Oddo BHF has raised its price target from 146 to 150 euros, while maintaining a neutral stance.

Banking stocks are also participating in the uptrend. Société Générale progresses by 2.99% to 74.76 euros. The bank has unveiled its strategic plan up to 2029, centered around cost control, selective growth, and risk management, which was approved by the board of directors on September 18. Additionally, the institution announced the early repayment of a 11.6 billion yen bond issue. CIC Market Solutions has set a target of 77 euros with a « hold » recommendation. The industrial sector is not left behind: Safran gains 2.29% to 330.40 euros.

Luxury and Energy: Moving Against the Tide

Among the few declines, the luxury sector weighs on the index. Kering drops 2.21% to 227.85 euros, marking the largest decrease in the CAC 40. The stock is subjected to several adjustments: BNP Paribas Exane has lowered its target from 285 to 280 euros, and Oddo BHF from 255 to 272 euros, with both firms maintaining a neutral stance. Hermès International falls by 0.56% to 1,324 euros, despite Bernstein reiterating an « outperform » opinion, albeit reducing its target from 2,150 to 1,750 euros.

Energy also declines, in line with falling crude prices: Engie loses 1.91% to 23.57 euros. The defense sector takes a breather, with Thales down by 0.80% to 236.30 euros. The retail sector also registers a slight dip, with Carrefour down 0.55% to 16.35 euros. By midday, the overall tone remains strongly bullish, driven by the combination of cheaper oil and a rotation favoring technology and banking stocks.