CAC 40 Under Pressure: Luxury and Tech Drop

A European Session Under Widespread Tension

Paris isn't the only one suffering. The Paris market is part of a broader European retreat that is more pronounced elsewhere: Germany's DAX is down 2%, London's FTSE 100 drops 2.2%, and the STOXX 600 gives up 1.34%. In comparison, the CAC 40 limits the damage. Across the Atlantic, the picture is more mixed with the Dow Jones and S&P 500 nearly flat, while the Nasdaq sees a moderate decline. The sharp jump in the VIX, referred to as a « spike, » indicates a sudden increase in risk aversion spreading across European assets.

This climate is fueled by the resurgence of geopolitical tensions in the Middle East, with Brent crude remaining above $92 following new U.S. strikes on Iranian targets. The scenario of prolonged disruption in the Strait of Hormuz, through which a significant portion of the world's crude passes, weighs on investor confidence and revives the energy risk premium.

STMicroelectronics and Danone Boosted by Analysts, Veolia Rallies its Employees

On the upside, the contrast with the general trend is clear. STMicroelectronics leads the CAC 40, gaining 1.67% to reach 62.55 euros, following Bank of America’s target price upgrade from 71 to 86 euros, while maintaining its buy recommendation.

Danone closely follows with a rise of 1.53% to 66.30 euros. The food giant benefits from an upgrade by Grupo Santander, which moves from « neutral » to « outperform » with an increased target of 85 euros.

Veolia Environnement gains 1.14% to reach 34.52 euros, as the company has launched its 2026 employee shareholding plan, with a match of up to 300 euros for its 180,000 employees worldwide. Euronext (+0.92%) and Thales (+0.82%) round out this quintet bucking the trend.

Hermès, Dassault Systèmes, and Sanofi at the bottom of the chart

The decline is more pronounced among the losers, with several major sector heavyweights retreating simultaneously. Hermès International posts the worst performance of the index, dropping 2.49% to 1,624 euros, dragging with it a luxury sector that remains sensitive to international tensions. Dassault Systèmes falls 2.06% to 19.29 euros, followed by Capgemini, which decreases by 1.95% to 98.54 euros: French tech is paying its share of the current nervous environment.

Renault declines by 1.70% to 26.66 euros, despite unveiling its Renault 4 E-Tech Plein Sud, a leisure version of the electric city car. Sanofi drops 1.66% to 75.76 euros, amidst clinical setbacks: the pharmaceutical company announced the halt of its phase 3 MOBILIZE study on riliprubart, following an unfavorable interim analysis conducted by the independent data monitoring committee. This decision concerns a drug candidate aimed at patients suffering from refractory chronic inflammatory demyelinating polyneuropathy.