The flagship index reached 8,385.57 points around 10:15 a.m., driven by the fall in crude oil and the prospects of a peace agreement between Washington and Tehran.
The flagship CAC 40 index climbed 2.25% to 8,385.57 points around 10:15 a.m., after a gain of 0.48% the day before to 8,200.80 points. Frankfurt gained 2.03% at 8:05 GMT, Milan 2.20% and London 1.38%. This synchronized reaction follows the announcement by Donald Trump, who canceled strikes against Iran on Thursday and spoke of a “very good agreement” to be signed “this weekend”. Andreas Lipkow, of CMC Markets, believes that “once again, the United States and Iran seem closer than ever to a peace agreement”, while Patrick Munnelly, of Tickmill Group, notes that the drop in oil calms inflation fears and pushes back expectations of rate hikes from central banks.
Impact on sectors
The fall in the price of oil penalized oil companies: TotalEnergies lost 4.08% to 74.82 euros and Maurel & Prom 6.39% to 8.72 euros around 10:15 a.m. On the other hand, industrialists, who are more energy-intensive, benefited from reduced energy costs: Saint-Gobain gained 5.13% to 77.04 euros and ArcelorMittal 4.61% to 59.88 euros. The automotive sector and equipment manufacturers also showed strong growth: Stellantis (+5.80% to 6.13 euros), Renault (+4.88% to 28.14 euros), OPmobility (+3.48% to 15.47 euros), Forvia (+6.41% to 10.02 euros) and Valeo (+3.43% to 14.76 euros).
Banking stocks outperformed, driven by the increase in key rates from the European Central Bank (ECB): Société Générale gained 6.03% to 73.32 euros, BNP Paribas 5.07% to 96.60 euros and Crédit Agricole 2.71% to 16.69 euros around 10:15 a.m. The ECB raised its rates on Thursday, its first turn of the screw since 2023, judging the growth of the euro zone to be resilient while warning that it did not intend to sustainably tolerate inflation fueled by the conflict in the Middle East.
