Paris Stock Exchange: The CAC 40 Struggles to Hold Out Amid Escalating Oil Tensions

A Tense Session Balancing Nervousness and Caution

The CAC 40 is trading at 7,916.02 points at midday, with a slight increase of 0.06%. This apparent calm belies the tensions in the Paris market: 23 stocks are rising, but 17 are falling, indicating a fragmented session with no clear direction.

In the background, the crisis around the Strait of Hormuz continues to dominate concerns. No diplomatic or military solution seems to be emerging to secure this critical passage through which a significant portion of the world's oil exports passes. This deadlock is fueling a continuous surge in oil prices, affecting markets across the board.

The VIX, often referred to as the fear index, has risen another 12.63% to reach 27.29, indicating high volatility and a climate of mistrust. In Europe, Germany's DAX showed a slight decline of 0.10% during its last session, while London's FTSE 100 dropped 0.34%. By the close on Thursday, March 12, Wall Street maintained a facade of stability, with the Dow Jones ending at 47,417 points. In Asia, the Nikkei fell by 1.04% and the Hang Seng by 0.70% in their most recent closes.

STMicroelectronics and Unibail lead gains, real estate and semiconductors provide reassurance

In this uncertain context, a few stocks are standing out. Unibail-Rodamco-Westfield posted the best performance in the CAC 40 by midday, with a jump of 2.23% to 96.06 euros.

Just behind, STMicroelectronics rose by 1.97% to 29.18 euros. The French-Italian semiconductor manufacturer received a significant boost: Oddo BHF raised its price target on the stock this Monday from 36 to 40 euros, while maintaining its outperform recommendation. This signal has heightened investors' interest in this tech stock.

The banking sector is also showing gains. Société Générale increased by 1.34% to 64.98 euros, in a favorable sector movement. Bouygues (+1.10% to 50.36 euros) and Accor (+1.09% to 40.94 euros) round out the leading gains, with the industrial conglomerate and the hotel giant advancing together without a specific catalyst.

Capgemini and Thales lag behind, service tech and defense slow down

On the downside, Capgemini recorded the steepest drop in the CAC 40, falling 2.32% to 105.30 euros. The consulting and IT services group is struggling amid a session where tech service stocks are having a hard time convincing investors.

Thales fell by 1.81% to 249.20 euros. The defense and electronics specialist, which experienced a strong upward trend in recent months following European rearmament, is taking a pause this Monday.

Bureau Veritas lost 1.42% to 27.78 euros. Stellantis, meanwhile, declined by 1.37% to 5.63 euros, despite Evercore ISI raising its target price from 7.50 to 8 euros—a target still far from the current share price of the automaker. The recommendation remains at « market perform."

Finally, Pernod Ricard fell by 1.17% to 67.72 euros. The spirits group continues to operate in an unfavorable environment for consumer goods exposed to international trade, as geopolitical tensions obscure market visibility.