Paris Stock Exchange: CAC 40 jumps over 1% in surprise rebound after Iranian shock

A Significant Rebound Following the Geopolitical Downturn

The session on Wednesday, March 4, contrasted sharply with the previous day's atmosphere. While European markets had dropped 1 to 3% on Monday and Tuesday due to military operations in Iran, oil prices soaring beyond $80 per barrel, and a 25% surge in European natural gas, Paris is making a significant recovery. The rebound is broad: only six stocks on the CAC 40 are declining at midday, with none remaining stable. This very favorable dispersion indicates a comprehensive movement, as if investors believe that the previous day's correction was sufficient.

This type of scenario, where nearly all listings rise simultaneously, signals a return of widespread appetite rather than an isolated sector movement. The context remains tense, however: the Strait of Hormuz, a critical passage for global oil transit, continues to be nearly paralyzed, maintaining pressure on transport costs and energy prices. Yet, at this stage, operators seem to be betting on a conflict that is contained over time, as several observers noted the day before.

Stellantis, Accor, Société Générale: Leading the Recovery

At the top of the chart, Stellantis leads the CAC 40 with a significant rise of 4.49%, reaching 6.47 euros. The automaker, which has faced challenges in recent months, is benefiting fully from the recovery movement even though no specific catalyst has been identified for the stock this Wednesday.

Following closely, Accor climbs by 3.99% to 45.31 euros, bolstered by a double boost from analysts. Citi has raised its price target from 52 to 58 euros while maintaining its positive recommendation, and Kepler Cheuvreux upgraded its rating from “hold” to “buy.” This signals growing interest in the hotel group.

The banking sector actively contributes to the rebound, with Société Générale advancing by 3.07% to 69.86 euros. Financial stocks, often sensitive to overall market movements, naturally amplify this type of positive session.

In the tech sector, STMicroelectronics recovers 2.82% to 27.89 euros, after experiencing turbulent sessions. Lastly, Danone progresses by 2.66% to 71.80 euros, following the upgrade from BNP Paribas Exane, which changed its recommendation from “neutral” to “outperform” with a target of 83 euros. The food group, a defensive stock by nature, is attracting interest amidst ongoing geopolitical uncertainties.

Isolated Declines with TotalEnergies Lagging Behind

Against the prevailing trend in the market, TotalEnergies drops 1.23% to 67.26 euros. This seems paradoxical given that oil prices remain high: the oil giant had already seen significant gains in previous sessions thanks to the surge in Brent prices and is now experiencing a typical profit-taking move. It's worth noting that Jefferies has raised its price target for the stock from 66 to 78 euros while maintaining a positive outlook, which does not prevent today's decline.

Among the few other declines, Orange falls 0.48% to 17.73 euros, Pernod Ricard 0.45% to 74.58 euros, and Capgemini 0.37% to 106.40 euros, without any specific triggering factor. Dassault Systèmes loses 0.35% to 18.27 euros in a less favorable environment for the software developer: Goldman Sachs downgraded its recommendation from « buy » to « neutral » and significantly reduced its price target from 29 to 20 euros.

Overall, this midday paints a picture of a pronounced technical rebound session, as the vast majority of CAC 40 stocks recover some of the losses incurred due to the geopolitical shock. The contrast between the severity of the crisis in Iran and the resilience shown by the markets remains one of the highlights of this trading week.