European stock market in disarray, between geopolitical blur and contrasting results

European stock markets are showing great reluctance. The CAC 40 drops by 0.41% to 8193 points, while the Euro Stoxx 50 gains 0.04% to 5897 points. London falls by 0.33% while the DAX 40 advances by 0.14%.

On the geopolitical front, a sense of deadlock prevails. After extending the ceasefire indefinitely between Washington and Tehran, Donald Trump announced yesterday an additional three-week truce between Israel and Lebanon.

In the late morning, the price of Brent crude oil is up by 1.07% at $107.09.

In this tense context, the confidence of French households continues to deteriorate. Weighed down by the war in the Middle East, it has reached its lowest level since the beginning of the conflict in Ukraine, according to INSEE. The indicator fell by 5 points in April to 84, after a first decline to 89 the previous month, moving further away from its long-term average (100 between January 1987 and December 2025). This is its lowest level since May 2023.

In Germany, the business climate has also deteriorated more sharply than expected in April, amid persistent tensions related to the conflict in Iran, according to the monthly survey by the Ifo Institute published on Friday. The index stands at 84.4, compared to 86.3 in March (revised down from an initial estimate of 88.6), while economists had anticipated an average of 86.6. This is its lowest level since May 2020, during the peak of the health crisis.

Market participants will be watching the University of Michigan Consumer Confidence Index at 4:00 pm.

Moving on to market movements, the CAC 40 is led by Bureau Veritas (+1.99%) and TotalEnergies (+1.44%), while Renault (-3.24%) holds the second-to-last place in the Paris Stock Exchange flagship index. The automaker is heading towards a fifth consecutive session of decline. Forvia (-4.78%) and Valeo (-4.60%) are also under pressure after a decline in their first quarter activity.

Additionally, Spie (+7.13%) shines at the top of the SBF 120 index, with the specialist in electrical and mechanical engineering reporting a less marked production decline than anticipated for the period. Spie is followed by Seb (+5.48%), which announced a 42% increase in operating profit to 72 million euros. At the Stockholm Stock Exchange, Electrolux (-23%) is heavily penalized after a disappointing quarter.

On the foreign exchange market, the euro slightly rises by 0.02% against the dollar, at 1.1686 USD.