CAC 40 Surges as U.S.-Iran Ceasefire Triggers Global Risk-On Sentiment

The CAC 40 surged 4.42%, gaining 349.70 points to close at 8,258.44, as investors reacted to a sudden de-escalation of tensions in the Middle East. The rally was sparked by a two-week ceasefire agreement between the United States and Iran, intended to stabilize critical energy corridors. The agreement, brokered by Pakistan, also calls for a cessation of hostilities between Israel and Hezbollah in Lebanon. Following the development, U.S. President Donald Trump announced he would suspend planned strikes on Iranian power plants and bridges, significantly reducing the immediate risk of a wider regional conflict. The geopolitical shift caused a sharp correction in energy markets. Brent crude futures for June plummeted nearly 14% to approximately $91 per barrel, driven by expectations that oil and gas flows through the Strait of Hormuz would resume without disruption. This caused a divergence in equity performance, with TotalEnergies falling 5.5%. Broad buying swept through the French market. ArcelorMittal and Safran led the gains, rising 11.2% and 10.3% respectively, while Societe Generale climbed nearly 10%. Other heavyweights including LVMH, Airbus, and BNP Paribas saw gains ranging from 4.5% to 9%. Additionally, Alstom rose 6% on the news of a €295 million European signaling order. Despite the market rally, underlying economic data for France remained weak. The HCOB Construction PMI fell to 38.4 in March, marking the steepest contraction in 18 months. Furthermore, France's trade deficit widened to €5.8 billion in February, with imports rising 5% while exports dipped 0.9%.