Paris Stock Exchange: CAC 40 Rebounds Despite Global Tensions, Luxury Takes a Separate Path

A Market Finding Relief in a Persistently Fragile Environment

The CAC 40 is up 0.55% at midday, reaching 7,979.9 points and nearing the symbolic 8,000 mark. The spread is clear: 31 stocks are up, while only 8 are down and one remains stable. The SBF 120 is following a similar trend, rising by 0.55%.

This rebound occurs against an international backdrop that remains relatively unpromising. The VIX, a gauge of market volatility, stands at 27.19, reflecting persistent tension. The ongoing impasse over securing the Strait of Hormuz continues to drive up crude oil prices, while the Bank for International Settlements (BIS) has just released a report highlighting multiple sources of volatility, including corrections on AI-related stocks and pressures on private credit. Meanwhile, major central banks are at an impasse, caught between inflationary pressures and growth risks. This potential stagflation scenario limits visibility for all market participants.

Oil, utilities, and banks drive the market upward

Stellantis recorded the strongest gain in the CAC 40 by midday, rising 3.12% to 5.89 euros. The automaker, whose stock remains at historically low levels, is experiencing renewed interest without a specific catalyst identified this Tuesday.

Trailing behind, energy and utility stocks are leading. Veolia gained 2.04% to 33.46 euros, and Engie advanced 1.95% to 28.27 euros. TotalEnergies rose 1.84% to 73.73 euros, following ongoing tensions in oil markets. Additionally, the stock benefited from a target price increase by Barclays, from 78 to 94 euros, while maintaining its « overweight » recommendation.

Société Générale rounds out the top five performers with a gain of 1.69% to 66.10 euros, in a generally favorable banking sector.

Luxury on the decline, Kering undergoing a major reorganization

The contrast is striking with the luxury sector, which alone accounts for three of the five largest declines in the CAC 40. LVMH drops by 1.58% to 471.45 euros, Hermès falls by 1.25% to 1,855.50 euros, and Kering decreases by 1.14% to 246.85 euros. This grouped decline highlights the caution surrounding the sector in a macroeconomic environment that is not very favorable for discretionary spending.

For Kering, the group announced the creation of Kering Jewelry, a new entity dedicated to jewelry led by Jean-Marc Duplaix. The group also revealed a restructuring of its activities into four segments starting from the first quarter of 2026, ahead of a Capital Markets Day scheduled for April 16. These strategic announcements are not enough, at this stage, to reverse the trend on the stock.

Outside of the luxury sector, Dassault Systèmes falls by 1.30% to 18.18 euros. Morgan Stanley initiated coverage of the stock with an « equal weight » recommendation and a price target of 23.25 euros. Meanwhile, STMicroelectronics declines by 1.07% to 29.07 euros, in a tech sector that remains under pressure globally, as noted by the BIS in its latest quarterly report.