CAC 40 Under Pressure Mid-Morning: Oil Rebounds, Paris Market Slips

A Morning Focused on Oil Prices

The Paris index hovers close to the 8,000-point mark, following a generally downward trend in Europe. The DAX falls by 0.77% in Frankfurt, the FTSE 100 drops 0.49% in London, and the STOXX 600 loses 0.76%. This contrasts sharply with the previous day’s closure in the US, where the Dow Jones (+0.19%) and the S&P 500 (+0.19%) ended with slight gains. In Tokyo, the Nikkei 225 finished with a gain of 0.52%, while the Indian Sensex fell by 1.37% during the session.

The main focus of the morning is the energy market. Brent crude is trading around $106, up nearly 1.80% within 24 hours, extending a rebound that began after last Friday’s dip below $99. Tensions around the Strait of Hormuz and the indirect exchanges between Washington and Tehran, without any tangible progress, maintain a geopolitical risk premium that affects the entire market.

TotalEnergies Leads, Luxury Holds Steady

Unsurprisingly, the oil sector holds its own. TotalEnergies rises 1.44% to 78.02 euros, placing the stock at the top of the CAC 40. The session benefits directly from strong oil prices, in a context where the Strait of Hormuz has once again become a decisive factor in energy pricing.

The luxury sector also shows resilience despite the heavy atmosphere. Kering increases by 1.05% to 241 euros, LVMH gains 0.74% to 455.35 euros, and L'Oréal advances by 0.69% to 356.05 euros. Euronext adds to the notable gains with an increase of 0.79% to 140.70 euros. This handful of stocks alone illustrates the narrow upward trend of the day: only eight stocks manage to remain in positive territory.

Banks, Technology, and Automotive in the Red

Pressure is focused on cyclical and interest rate-sensitive sectors. Société Générale records the largest drop in the CAC 40, down 2.93% to 67.36 euros. Technology is also affected: Capgemini falls 2.17% to 99.54 euros, in an environment where rising oil prices are mechanically impacting European growth stocks.

The automotive sector remains weakened: Stellantis declines 2.15% to 6.27 euros, a level reflecting the sector's ongoing discomfort with the energy shock. EssilorLuxottica drops 1.78% to 164.03 euros, and Schneider Electric loses 1.75% to 269.85 euros, completing a ranking dominated by industrial and financial stocks.

The dispersion summarizes the morning's angle: the CAC 40 is experiencing a narrow session, polarized by oil prices and geopolitical caution surrounding the Washington-Tehran discussions. At this point in the morning, the atmosphere remains one of a market searching for direction rather than making decisive moves.