European stock markets started the week on a significant decline, impacted by increased tensions in the Persian Gulf. The CAC 40 dropped below 8,000 points, down 1.71% to 7,976 points, while the Euro Stoxx 50 fell by 2.05% to 5,760 points. In Frankfurt, the DAX fell by 1.22% in a session marked by the closure of the London Stock Exchange for a public holiday.
Geopolitical concerns intensified around the Strait of Hormuz amid conflicting reports between Tehran and Washington regarding a maritime incident. Additionally, the United Arab Emirates reported missile launches from Iran, mostly intercepted, with one projectile landing in the sea. A South Korean vessel was also hit by an explosion followed by a fire in the area, causing no casualties. In this context, oil prices saw a significant increase, with Brent gaining 5.32% to $113.99 per barrel and WTI rising by 3.52% to $105.25.
On the macroeconomic front, industrial orders in the United States rose by 1.5% in March, exceeding expectations.
In Europe, manufacturing activity indicators confirmed improvement. In France, the PMI reached 52.8, the highest since May 2022, while in the eurozone it reached 52.2, the highest in over four years. In Germany, it stood at 51.4. Additionally, investor sentiment in the eurozone improved in May, with the Sentix index at -16.4, better than expected.
In the stock market, Soitec stood out at the top of the SBF 120 with a 20.91% increase, supported by a positive note from Deutsche Bank, leading to a rise of over 560% since the beginning of the year. Conversely, EssilorLuxottica (-4.41%) and Societe Generale (-3.97%) were among the biggest losers in the CAC 40, while Capgemini (+3.01%) and STMicroelectronics (+2.15%) performed well.
The German automotive sector was affected by Donald Trump’s announcement of a 25% tariff increase on European vehicles. Porsche, Mercedes, BMW, and Volkswagen all experienced significant declines.
Finally, in the foreign exchange market, the euro slightly fell by 0.24% against the dollar to 1.1697.
