CAC 40 Wavers at Midday, Torn Between Oil and Ukraine Diplomacy

A Paris market shared amid international tensions

The Paris market is making slow progress. The dispersion clearly illustrates this indecision: 19 stocks of the CAC 40 are advancing, 20 are declining, and only one remains stable. There's nothing that reveals a dominant conviction. Nevertheless, two geopolitical issues are shaping the backdrop. On one side, the first visit of American emissaries to Kyiv, following over three hours of talks the previous day with Vladimir Putin, fosters cautious hope for a discussion channel on Ukraine. A truce limited to the capitals has been observed, but Kyiv warns that the war is expected to continue.
On the other side, tension remains high around the Strait of Hormuz. After cross-attacks between American and Iranian forces on tankers, Brent crude is trading around 97 dollars a barrel, up nearly 8% over the past week. This energy risk premium is directly influencing the Paris session by boosting oil stocks.

Energy and Industry Leading the Way, Semiconductors in the Spotlight

At the top of the chart, STMicroelectronics marks the biggest increase in the CAC 40, with a gain of 2.49% to €45.92. The Franco-Italian semiconductor manufacturer is clearly leading the technology sector of the day.
Following behind, Legrand rises by 1.63% to €143.20. The electrical equipment specialist benefits from a buy recommendation reaffirmation by CIC Market Solutions, with a target maintained at €170. The electrical sector remains well-oriented, exemplified by Schneider Electric, which is up 1.20% to €291.45.
In line with the firmness of oil, TotalEnergies gains 1.39% to €77.16, following high Brent prices. Stellantis rounds out the front of the pack with an increase of 1.29% to €4.84.

Technology, Insurance, and Tires Under Pressure

Conversely, Dassault Systèmes is trailing, down 1.95% to 20.61 euros. The software publisher exemplifies the weakness of part of the French tech sector, alongside Capgemini, which fell 1.64% to 104.65 euros.
Michelin dropped 1.68% to 34.57 euros. CIC Market Solutions maintains its « hold » recommendation on the tire manufacturer, with an unchanged target price of 35 euros. The decline also affects financials, with AXA down 1.41% to 44.01 euros, while Pernod Ricard loses 1.36% to 60.92 euros.
Elsewhere in Europe, the picture is mixed at midday: the FTSE 100 is up by 0.16%, while the DAX falls by 0.29% and the STOXX 600 remains almost steady, down by 0.01%. At the close of Friday evening on Wall Street, the S&P 500 had declined by 0.38% and the Dow Jones by 0.51%, while the Nasdaq 100 had gained 0.21%.