Paris Stock Exchange: CAC 40 Drops, 34 Out of 40 Stocks in the Red Mid-session

A Session Dominated by Middle East Tensions and Surging Oil Prices

The CAC 40 is trading at 7,686.46 points, down 1.07%. The SBF 120 follows a similar trend, dropping by 1.09%. The disparity is striking: 34 stocks are in the red, only 6 are managing to keep their heads above water, and none are stable. The Paris market shows a uniformly negative tone, rarely seen in its intensity.

The geopolitical context has significantly intensified in recent hours. Donald Trump issued a threatening message to Iran on Truth Social, urging Tehran to « get serious before it's too late. » A few hours later, he announced yet another postponement of the ultimatum for bombings on vital infrastructure to April 6. This back-and-forth occurs as indirect negotiations continue through Pakistan, Turkey, and Egypt.

The direct result: Brent crude has climbed back to $110 a barrel, after briefly falling below $100 on March 23. This surge in crude prices, combined with a still-high VIX at 25.33, reflects a pronounced climate of nervousness across the markets. Volatility remains at tense levels, even though the fear index has eased by 6% compared to the previous day.

Pernod Ricard, Capgemini, and Air Liquide hold steady in a sea of red

In this challenging environment, few stocks are managing to stand out. Pernod Ricard boasts the best performance of the morning with a gain of 3.27% to 61.90 euros, despite no specific catalyst being identified. Capgemini is up 1.43% to 97.58 euros, while Sanofi advances 1.28% to 82.19 euros.

Air Liquide gains 0.62% to 172.38 euros. The company has inaugurated its first advanced semiconductor materials manufacturing plant in Taiwan, an investment aligned with its strategy to strengthen the next-generation chip supply chain. Additionally, Morgan Stanley has upgraded its recommendation on the stock, moving from « underweight » to « equal weight, » with a target set at 168 euros. Eurofins Scientific rounds out the list of rare survivors with a modest increase of 0.29% to 61.98 euros.

STMicroelectronics Drops Nearly 5% as Cyclical Stocks and Banks Face Pressure

At the back of the pack, STMicroelectronics posted the largest decline of the morning: down 4.90% to 27.87 euros. Despite Jefferies raising its price target for the Franco-Italian semiconductor manufacturer from 29 to 35 euros while maintaining a « buy » recommendation, the stock remains under pressure in a tech sector weakened by risk aversion.

Cyclical and industrial stocks are among the session's top losers. ArcelorMittal, heavily exposed to the global economic cycle, fell 3.17% to 43.08 euros. Legrand dropped 2.94% to 128.70 euros. Eiffage slid 2.85% to 127.70 euros on a day when the construction group also announced it had increased its stake in Getlink, the operator of the Channel Tunnel, to 29.40% of the capital and 29.50% of the voting rights.

The banking sector hasn't been spared either. Société Générale dropped 2.49% to 61.80 euros, following KBW's decision to cut its price target on the stock from 77 to 72 euros. The entire financial sector is suffering from the resurgence of geopolitical uncertainty, which weighs on global growth expectations.