The Paris stock market index has recorded its biggest gain in more than four years, breathing a sigh of relief after the ceasefire between the United States and Iran. However, the path to a lasting resolution of the conflict still seems uncertain.
The Paris Stock Exchange has seen its strongest increase in over four years. Its flagship index, the CAC 40, rose by 4.49% to 8,263.87 points at the close of trading this Wednesday, April 8.
Investors enthusiastically welcomed the ceasefire announced by Donald Trump, with the CAC 40 recording its largest increase since March 9, 2022 (+7.13%). At that time, the market was hopeful for a possible peace in Ukraine.
Wall Street is also euphoric after the announcement of a two-week truce between the United States and Iran in exchange for the reopening of the Strait of Hormuz. At the close of European markets, the Dow Jones gained 2.7%, the Nasdaq index rose by 2.9%, and the broader S&P 500 index climbed by 2.4%.
“I agree to suspend bombings and attacks against Iran for two weeks,” declared the American president on his Truth Social platform just over an hour before the expiration of his ultimatum.
Tehran, on its part, has indicated that it would stop its attacks if the ceasefire was respected and if traffic in the Strait of Hormuz was gradually reopened.
The navigation in this strategic channel (through which the equivalent of 20% of the world’s consumption of oil and liquefied natural gas flows daily) will be allowed, proclaimed the Iranian Foreign Minister, Seyed Abbas Araghchi.
“This is precisely the point that reassured the markets: with more than 20 million barrels per day involved, any prospect of normalization, even temporary, triggered a violent adjustment of prices,” noted John Plassard of Citigroup.
Context: The article discusses the significant increase in the Paris stock market index following the ceasefire agreement between the United States and Iran.
Fact Check: The content accurately reports the recent financial market developments.
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