European stock exchanges resist geopolitical context

(Zonebourse.com) – The Paris Stock Exchange and its counterparts in the Old World are regaining some lost ground, showing a certain resilience as the 15-day ceasefire between Washington and Tehran is set to end on Wednesday evening. Before noon, the CAC 40 gained 0.2% to 8,350 points, while the Euro Stoxx 50 rose 0.5%, encouraged by the relatively strong performance of American indices on Monday (e.g. Nasdaq 100 down 0.3% at the close).

Uncertainty still reigns regarding the war… However, ambiguity persists about a possible resumption of talks between the United States and Iran in Pakistan, as the 15-day ceasefire between the two countries is set to end on Wednesday evening. An American delegation led by J.D. Vance is expected in Islamabad, but Tehran has stated it does not want to “negotiate under threat” and has threatened to “play new cards on the battlefield” if war were to resume.

The uncertainty surrounding the Middle East and the fate of the Strait of Hormuz is logically reflected in oil prices: Brent is up about 1% to $95, while Texas WTI also increases by a similar percentage to $87.

“In the future, oil markets are likely to remain very sensitive to geopolitical developments in the Middle East,” warns Abdelaziz Albogdady, market research & fintech strategy manager at FXEM. “Persistent tensions could continue to drive prices higher, while a credible de-escalation or the re-establishment of stable maritime transport conditions could trigger a new wave of massive sales,” he continues.

… and dampens morale due to the ZEW index Illustrating the effects of the geopolitical context on market sentiment, the ZEW index fell significantly into negative territory this month, dropping to -17.2 after -0.5 in March, when economists expected a decline to only around -5.

This indicator of German investors’ confidence in the economic prospects of their country has fallen below its previous low of -14 in April 2025. As a reminder, it was still at 58.3 in February.

“The economic consequences of the war in Iran for the German economy go well beyond a simple rise in prices,” explains Achim Wambach, president of the ZEW institute. According to the economist, German companies “are worried about long-term energy shortages, which are dampening investments and mitigating the effects of government stimulus measures.”

The evaluation of Germany’s current economic situation has also worsened for the current month, with the corresponding indicator reaching -73.7, 10.8 points lower than in March.

Thales neglected after its activity report In the news of Paris values, Thales drops 4.4% and stands out as the worst performer on the SBF 120, as investors penalize weak results in Cyber and the absence of an increase in forecasts on the occasion of its activity report.

The electronics group had a dynamic start to the year, driven by defense, with a significant increase in new orders and organic growth of nearly 10% in revenue.

Another declining stock, Safran, decreased by 2.4%, as the aerospace equipment manufacturer lost Jefferies’ support, which downgraded its recommendation from “buy” to “hold” and reduced its price target from €350 to €310.

Elsewhere in Europe, AB Foods drops 3.5% in London after announcing its plan to spin off Primark, its low-cost clothing chain, amid half-year results below expectations and deteriorating activity in sugar.

Copyright (c) 2026 Zonebourse.com – All rights reserved. [Context: The article discusses the impact of geopolitical events on European markets, particularly in response to escalating tensions between the United States and Iran.] [Fact Check: The information provided in the article accurately reflects the current economic and market conditions in Europe.]