European stock markets started the week on a downward trend, influenced by increased tensions in the Persian Gulf. The CAC 40 fell below 8,000 points, down 1.71% to 7,976 points, while the Euro Stoxx 50 dropped 2.05% to 5,760 points. In Frankfurt, the DAX slid 1.22%, with the London Stock Exchange closed for a holiday.
Geopolitical concerns intensified around the Strait of Hormuz due to conflicting reports between Tehran and Washington regarding a maritime incident. The United Arab Emirates reported missile launches from Iran, mostly intercepted, with one projectile falling into the sea. A South Korean ship was also hit by an explosion and fire in the area, with no casualties.
Amidst this, oil prices surged, with Brent gaining 5.32% to $113.99 per barrel and WTI rising 3.52% to $105.25.
In macroeconomic news, US factory orders increased by 1.5% in March, surpassing expectations.
In Europe, manufacturing activity indicators showed improvement: France’s PMI rose to 52.8, the highest since May 2022, and the eurozone reached 52.2, the highest in over four years. Germany stood at 51.4. Investor sentiment in the eurozone also improved in May, with the Sentix index at -16.4, better than expected.
Soitec saw a notable 20.91% jump on the SBF 120 index, buoyed by a positive Deutsche Bank rating, increasing its year-to-date gains to over 560%. Conversely, EssilorLuxottica (-4.41%) and Societe Generale (-3.97%) were among the top losers on the CAC 40, while Capgemini (3.01%) and STMicroelectronics (2.15%) performed well.
The German automotive sector was hit by Donald Trump’s announcement of a 25% tariff increase on European vehicles. Porsche, Mercedes, BMW, and Volkswagen all experienced significant declines.
Finally, the euro slightly dropped by 0.24% against the dollar, reaching 1.1697.
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