CAC 40: the Paris Stock Exchange erases three sessions of decline in an explosive geopolitical climate

In brief

• The CAC 40 rebounded by more than 1% after three consecutive sessions of decline.

• European markets are following the progress of Wall Street despite the worsening tensions in the Middle East.

• Oil is starting to rise again with Brent close to 96 dollars.

• Investors are awaiting the US employment report released on Friday.

• STMicroelectronics is soaring thanks to its prospects in artificial intelligence.

• Abivax falls sharply despite clinical results considered positive.

The CAC 40 regains color despite a tense geopolitical climate

 

After several complicated sessions, the CAC 40 regains altitude. The Parisian index rose by more than 1% on Tuesday morning, returning above 8,230 points. A movement which may surprise as international news remains busy.

However, the markets seem to favor economic resilience over geopolitical concerns. Investors chose to follow the dynamics observed the day before in New York, where the major American indices recorded new highs. The Dow Jones, the S&P 500 and the Nasdaq all finished in the green, confirming an appetite for risk that is not weakening.

This increase comes as diplomatic exchanges between Washington and Tehran are going through a new zone of turbulence. Conflicting information is increasing around nuclear negotiations, while clashes between Israel and Hezbollah in Lebanon continue to fuel concerns.

The paradox is striking: the more tensions accumulate on the political ground, the more the financial markets seem convinced that the global economy retains a remarkable capacity for adaptation.

 

Le pétrole repart à la hausse

 

The primary beneficiary of this geopolitical deterioration remains the energy market.

The barrel of WTI has risen towards 92 dollars while Brent is approaching 96 dollars. Operators fear that an extension of the conflict in Lebanon or a lasting blockage of Iranian exports will reduce the global supply of crude oil.

This rise in energy prices complicates the task of central banks. More expensive energy mechanically feeds inflationary pressures and reduces the room for maneuver of the monetary authorities.

 

American employment at the center of all attention

 

If investors keep an eye on the Middle East, their real meeting remains scheduled for Friday.

The monthly US employment report could redefine expectations regarding the Fed’s monetary policy. A still-robust labor market would strengthen policymakers’ arguments for higher rates for longer. Conversely, a more marked slowdown would open the way to monetary easing in the coming months.

The balance remains fragile. The markets continue to hope for a rate cut, while several members of the American central bank remain concerned by the persistence of certain inflationary tensions.

On the foreign exchange market, the euro is moving around 1.1630 dollars. Bitcoin, for its part, remains above $70,000.

 

Artificial intelligence powers STMicroelectronics

 

The star of the day in Paris is undoubtedly STMicroelectronics.

The stock jumped nearly 9% after raising its targets related to artificial intelligence infrastructure. The group is now targeting around a billion dollars in turnover in data centers from 2026.

This increase illustrates a trend that goes far beyond a single company. Massive investments in chips, servers and digital infrastructure continue to reshuffle the cards in the global technology industry.

Other notable progressions include Atos, Interparfums, Alstom, Kering and BNP Paribas.

 

Abivax collapses despite encouraging results

 

The most spectacular movement, however, occurs on the decline side.

Abivax drops more than 30% even as the company released positive preliminary results for its ulcerative colitis treatment.

This reaction may seem counterintuitive. However, it recalls a well-known reality of financial markets: valuations often include very high expectations. When announcements, even favorable ones, do not sufficiently exceed expectations, profit taking can become brutal.

Eutelsat, SES and several technology stocks are also among the notable declines during the session.

 

Savings are always looking for protection alternatives

 

Geopolitical upheavals, questions about interest rates and the volatility of the markets remind us that asset diversification retains all its interest. Some savers thus choose to hold tangible assets such as lingots d’orTHE silver bars or the investment gold coins.

This approach aims to reduce dependence on financial intermediaries and purely digital assets. In a period where monetary, budgetary and geopolitical balances remain in flux, the direct holding of physical assets constitutes for certain investors a form of additional security of their assets.