Paris Stock Exchange: Dark Day as 36 Out of 40 CAC 40 Stocks End in the Red

An almost unanimous wave of red hits the Paris stock exchange

It's rare to see such a bearish alignment on the CAC 40. On Monday, March 2, amid a Middle Eastern war context, only four stocks in Paris's leading index ended the day in positive territory. All others declined, sometimes sharply. The CAC 40 dropped 2.17%, closing at 8,394.32 points, marking one of the most uniformly negative sessions in recent weeks.

The magnitude of the drop and the near-total lack of survivors illustrate a massive retreat, where no defensive sector has effectively played its buffering role. Only TotalEnergies, Thales, Bureau Veritas, and Euronext managed to stay afloat, though they couldn't generate enough momentum to mitigate the index's decline.

TotalEnergies Stabilizes with a Boost from Dual Analyst Upgrades

In this bleak landscape, TotalEnergies stood out as a notable exception with the prospect of a probable rise in oil prices following the closure of the Strait of Hormuz and several tankers being targeted by Iran. While Brent crude increased by 4.6% at this time, shares of the energy giant rose by 3.09% to 69.36 euros, buoyed by two consecutive boosts from analyst firms. Citi simultaneously raised its price target from 71 to 75 euros while maintaining its buy recommendation. Meanwhile, JP Morgan was even more proactive, upgrading from « neutral » to « overweight » and lifting its price target from 63 to 75 euros. The dual positive signals allowed the stock to swim against the bearish tide.

Beyond TotalEnergies, gains remained symbolic. Thales advanced by 0.39% to 255.90 euros, while Bureau Veritas edged up by 0.20% to 29.48 euros, benefiting from a slight price target increase by Goldman Sachs, from 39.50 to 40 euros. Euronext closed almost flat, with a nominal increase of 0.07%.

Automotive and Luxury Sectors Decline, Accor Drops Nearly 9%

On the downside, the severity of the declines left a strong impression. Accor was the most battered stock of the session, plunging 8.89% to 44.88 euros—a drop of unusual magnitude for the hotel group—as concerns about tourism intensified with the escalating conflict in the Middle East.

The automotive sector saw massive sell-offs. Stellantis fell 7.11% to 6.44 euros, as analysts downgraded their outlook for the stock: Citi lowered its target from 9 to 8 euros, maintaining a “neutral” stance, while Bernstein set a new target of 6.20 euros, down from 8.50 euros previously, with a “market perform” recommendation. Following Stellantis, Renault lost 5.05% to 30.49 euros, swept up by the same sector-wide trend.

The luxury sector was not spared either. Kering dropped 5.04% to 271.50 euros, and LVMH declined 4.34% to 520.50 euros. These two heavyweights on the Paris Stock Exchange saw their combined retreat significantly weigh on the index, given their substantial weighting in the CAC 40.

Overall, this Monday, March 2 session will be remembered for its almost universally bearish nature. With 36 out of 40 stocks down, the Paris Stock Exchange experienced one of those Mondays where caution prevailed across the board.