European stock markets began the week in sharp decline, driven by renewed 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 fell 1.22%, in a session marked by the closure of the London Stock Exchange for a public holiday.
Geopolitical concerns rekindled around the Strait of Hormuz, amid conflicting information between Tehran and Washington regarding a maritime incident. Additionally, the United Arab Emirates reported missile strikes from Iran, mostly intercepted, with one projectile falling into the sea. A South Korean ship was also hit by an explosion followed by a fire in the area, causing no casualties.
In this context, oil prices saw significant gains, with Brent rising by 5.32% to $113.99 per barrel and WTI by 3.52% to $105.25.
On the macroeconomic front, industrial orders in the United States rose by 1.5% in March, exceeding expectations.
In Europe, manufacturing activity indicators confirmed improvement: France’s PMI rose to 52.8, the highest since May 2022, while 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, surpassing expectations.
In the stock market, Soitec led the SBF 120 with a 20.91% surge, propelled by a positive note from Deutsche Bank, marking a total increase of over 560% since the beginning of the year. Conversely, EssilorLuxottica (-4.41%) and Société Générale (-3.97%) recorded significant declines, while Capgemini (+3.01%) and STMicroelectronics (+2.15%) performed well.
The German automotive sector was affected by Donald Trump’s announcement of a 25% tariff hike on European vehicles, leading Porsche, Mercedes, BMW, and Volkswagen to experience notable losses.
Finally, in the foreign exchange market, the euro slightly declined by 0.24% against the dollar, reaching 1.1697.
