Strait of Hormuz Crisis: CAC 40 Remains Steady, Boosted by Semiconductors and Luxury Brands

A Resilient Session Amid Geopolitical Turmoil

At 12:30 PM on Thursday, March 5, the CAC 40 is at 8,203.20 points, up by 0.43%. The Paris market appears surprisingly calm, even as the international scene remains dominated by the military escalation between the United States, Israel, and Iran. The blockade of the Strait of Hormuz by Iran's Revolutionary Guards—a first in the history of this crucial passage through which about 20% of the world's oil transits—has pushed Brent crude up nearly 11% in five days, reaching $78 per barrel.

In France, this surge in oil prices is beginning to affect prices at the pump. The government has initiated inspections by the DGCCRF to ensure that price increases stay proportionate, while also reassuring the public about the supply across the country. On the Paris stock exchange, 28 of the 40 CAC stocks are in positive territory at midday, compared to only 11 declining and one remaining stable. The variation is clear: investors currently seem to favor targeted purchases rather than a widespread sell-off.

STMicroelectronics Soars, Kering and Airbus Boosted by Analysts

The biggest gain of the day comes from STMicroelectronics, with its stock soaring 6.02% to 29.42 euros. The French-Italian semiconductor manufacturer leads the way at midday in a tech sector that's regaining momentum.

Following behind, Kering rises by 2.57% to 263.50 euros, buoyed by a double upgrade in recommendation. Bernstein has upgraded its view from « underperform » to « market perform » while lowering its price target from 250 to 235 euros. Meanwhile, CITIC CLSA has shifted from « reduce » to « hold, » with a significant increase in its target from 147 to 243 euros, reflecting a substantial reassessment by the Asian bank. The luxury group, which has faced challenges in recent months, is benefiting from this change in perception.

Airbus, on the other hand, gains 2.03% to 180.80 euros after Citi upgraded the stock from « neutral » to « buy, » raising the target from 208 to 217 euros. The European aircraft manufacturer benefits from this boost at a time when the aerospace sector continues to navigate strong orders and production challenges.

Lower in the rankings, Euronext climbs 1.80% to 141.70 euros, and Pernod Ricard rebounds 1.60% to 73.80 euros, contributing to the overall positive tone of the session.

Banks and Defense Fall Back: Crédit Agricole and Thales in the Red

On the decline side, Crédit Agricole drops 1.62% to 17.32 euros, marking the largest fall on the CAC 40 by midday. The banking sector, typically sensitive to geopolitical uncertainties and rate movements, is the main negative contributor for the morning.

Thales decreases by 1.44% to 247.10 euros, despite an upgrade by Intesa Sanpaolo from « underperform » to « neutral, » with the target price raised from 230 to 260 euros. This analyst move is evidently not enough to stop profit-taking on the defense group’s stock, which had risen significantly in recent weeks amidst international tensions.

EssilorLuxottica falls by 0.59% to 218 euros, Sanofi slides 0.56% to 78.79 euros, and Michelin loses 0.53% to 31.75 euros. These declines remain modest and do not indicate a pronounced sectoral movement. Overall, the day's declines appear contained, reinforcing the impression of a Paris market that, in the midst of a major geopolitical crisis, chooses not to give in to panic.