European stock markets kicked off the week with significant losses, largely due to increased tensions in the Persian Gulf. The CAC 40 fell below 8,000 points, dropping by 1.71% to 7,976 points, while the Euro Stoxx 50 decreased by 2.05% to 5,760 points. In Frankfurt, the DAX slid by 1.22% in a session marked by the closure of the London Stock Exchange for a holiday.
Geopolitical concerns were reignited around the Strait of Hormuz, with conflicting reports from Tehran and Washington regarding a maritime incident. Additionally, the United Arab Emirates reported missile firings from Iran, most of which were 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, with no casualties reported.
In this climate, oil prices saw a significant rise, with Brent gaining 5.32% to $113.99 per barrel and WTI increasing 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. The PMI in France reached 52.8, the highest since May 2022, while in the eurozone it hit 52.2, the highest in over four years. In Germany, it stood at 51.4. Furthermore, investor sentiment in the eurozone improved in May, with the Sentix index at -16.4, better than anticipated.
In stock news, Soitec stood out at the SBF 120 with a 20.91% surge, driven by a positive rating from Deutsche Bank, leading to a rise of over 560% since the beginning of the year. Conversely, EssilorLuxottica (-4.41%) and Societe Generale (-3.97%) saw significant declines in the CAC 40, while Capgemini (3.01%) and STMicroelectronics (2.15%) fared 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 sharp downturns.
Lastly, in the currency market, the euro slightly decreased by 0.24% against the dollar, reaching 1.1697.
