The CAC 40 Rides Geopolitical Relief Back to 8,440 Points

A session marked by relaxation in the Middle East

The theme of the morning is clear: Paris is following the path of diplomatic easing initiated at the end of last week. The framework agreement extending the ceasefire between the United States and Iran by 60 days, along with the gradual reopening of the Strait of Hormuz, has triggered a significant drop in oil prices. Brent crude fell by about 3% in the morning to hover just above the $80 threshold, reducing the geopolitical risk premium that has weighed on the markets for over three months.

This movement is visible everywhere. In Tokyo, the Nikkei 225 closed up 5.13%, in Frankfurt, the DAX surged 1.54% during the session, while on Wall Street, the NASDAQ rose 3.39% and the S&P 500 increased by 2.16%. Paris is participating in the rebound, albeit more moderately, constrained by the sensitivity of several of its heavyweights to the decline in oil prices and the export-driven cyclical stocks.

Schneider, Capgemini, and Legrand Drive the Market

At the top of the leaderboard, Schneider Electric gains 3.37% to 279.25 euros, marking the largest increase in the CAC 40. The energy management and automation specialist is fully benefiting from renewed appetite for European industrial and technological stocks, amidst easing tensions over energy.

Technology follows with Capgemini (+1.80% to 98.20 euros), buoyed by the surge of the NASDAQ across the Atlantic. Legrand rises 1.73% to 137.90 euros, continuing the momentum of electrical equipment manufacturers. Safran advances by 1.71% to 321.80 euros: the civil aerospace sector is benefiting from cheaper oil and a prospect of gradual normalization of traffic in the Middle East. Crédit Agricole rounds out the top five with a gain of 1.51% to 17.19 euros.

However, the dispersion remains measured: 21 stocks are up, 19 are down. The trend is positive, but far from a unanimous buying movement.

Renault, STMicroelectronics, and Saint-Gobain Against the Trend

At the other end of the scale, Renault drops by 2.95% to 27.95 euros, marking the index’s worst performance. Despite this, the manufacturer announced the expansion of the production of its Boreal SUV at the Turkish Bursa plant, introducing a full hybrid E-Tech 160 hp engine. Furthermore, the group unveiled, alongside Thales on Monday at Eurosatory, the 4 Troop, a multi-role vehicle integrating secure communication, drones, and artificial intelligence. Stellantis falls 0.79% to 6.04 euros, with the automotive sector as a whole experiencing a wave of profit-taking after several strong sessions.

STMicroelectronics declines by 2.64% to 66.64 euros, going against the surge in American technology stocks. Pernod Ricard loses 0.76% to 62.76 euros.

Saint-Gobain decreases by 0.74% to 77.50 euros, even as the group signed a binding agreement on Monday to sell its Dahl business operations in Sweden, Norway, and Denmark to Finland's Kesko, with an enterprise value of 1.518 billion euros. This transaction is part of the « Lead & Grow » strategic plan and is expected to be completed by early 2027. Rothschild & Co Redburn adjusted its target price from 103 to 101 euros while maintaining a buy recommendation.