Stock Market: CAC 40 Soars Over 1% Driven by Broad Rally

A Positive Market Session Amid US-Iran Tensions

The Paris stock exchange is moving in a tense international context this Tuesday. Brent crude reached $111.40 in the morning, buoyed by the ultimatum issued by Donald Trump to Iran: the US president is demanding that Tehran agree to a ceasefire deal before Wednesday at 2 a.m. French time. Iran, which has already let several deadlines imposed by Washington pass, shows no sign of backing down. The threat of a strike against Iranian civilian infrastructure is fueling uncertainty in the global energy markets.

Despite this backdrop, Parisian investors show a clear appetite for risk at mid-session. Almost the entire CAC 40 is in positive territory: only four stocks are declining, and even then only marginally. The SBF 120 is rising in similar proportions, up 1.15% at 6,102.65 points. The extent of the rebound and the very favorable spread between gains and losses indicate a solidly anchored dynamic this Tuesday morning.

STMicroelectronics leads the way as tech and luxury set the pace

STMicroelectronics is leading the charge with a surge of 6.21% to 30.89 euros. The Franco-Italian semiconductor manufacturer is by far the best performer in the CAC 40 at midday, driving the entire tech sector upwards. Capgemini is up 2.38% to 105.30 euros, confirming the solid performance of the digital sector.

Behind the tech companies, Publicis Groupe shows the second-largest increase in the index, up 3.97% to 75.36 euros. The advertising communication giant is benefiting from strong buying interest.

Saint-Gobain gains 3.12% to 72.72 euros. On Tuesday, Barclays reiterated its « overweight » recommendation for Saint-Gobain, while lowering its price target from 110 to 100 euros.

In the luxury segment, Hermès International adds 2.37% to 1,707 euros. CIC Market Solutions initiated coverage of the stock with a « buy » recommendation and a price target set at 2,000 euros, contributing to the day's positive momentum for the stock.

Defense and Aerospace Slightly Down, the Only Shadow of the Day

The few declines during the session are concentrated in a well-identified sector: defense and aerospace. Thales drops 0.71% to 265.60 euros, marking the largest decline in the CAC 40 by midday. Alphavalue maintains its « reduce » recommendation on the stock but has raised its price target from 274 to 292 euros. Airbus decreases by 0.22% to 164.78 euros, despite the announcement of an order for three H225 helicopters in Vietnam intended for the offshore energy sector. Safran marginally falls by 0.10% to 287 euros.

Eurofins Scientific gains one-hundredth of a point in negative territory, at 66.88 euros, while Stellantis, at 6.58 euros with an almost unchanged variation of +0.06%, remains stagnant. These declines remain symbolic in light of the extent of the increase affecting the rest of the market.

By midday, the Paris session is characterized by its strongly bullish nature. The contrast between the confidence displayed by equity markets and the uncertainties related to the confrontation between Washington and Tehran is the standout feature of this Tuesday on Euronext Paris.