European stock markets started the week on a sharp decline, neutralized by increased tensions in the Persian Gulf. The CAC 40 fell below 8,000 points, down 1.71% at 7,976 points, while the Euro Stoxx 50 dropped 2.05% to 5,760 points. In Frankfurt, the DAX slipped 1.22% in a session marked by the closure of the London Stock Exchange for a holiday.
Geopolitical concerns flared up around the Strait of Hormuz, amidst conflicting information between Tehran and Washington regarding a maritime incident. Meanwhile, the United Arab Emirates reported missile shots from Iran, mostly intercepted, with one projectile falling into the sea. A South Korean ship was also hit by an explosion followed by a fire in the area, but no casualties were reported.
In this context, oil prices saw significant increases, with Brent rising by 5.32% to $113.99 per barrel and WTI climbing 3.52% to $105.25.
On the macroeconomic front, US factory orders rose 1.5% in March, below expectations.
In Europe, manufacturing activity indicators confirmed improvement: France’s PMI reached 52.8, the highest since May 2022, while the eurozone hit 52.2, the highest in over four years. Germany stood at 51.4. Additionally, investor sentiment in the eurozone rebounded in May, with the Sentix index at -16.4, beating expectations.
In the stock market, Soitec led the SBF 120 with a 20.91% surge, buoyed by a positive note from Deutsche Bank, increasing its gains for the year to over 560%. Conversely, EssilorLuxottica (-4.41%) and Société Générale (-3.97%) saw substantial declines, while Capgemini (3.01%) and STMicroelectronics (2.15%) performed well.
The German automotive sector was hit by Donald Trump’s announcement of a 25% tariff increase on European vehicles. Porsche, Mercedes, BMW, and Volkswagen all experienced notable drops.
Lastly, in the currency market, the euro slightly decreased by 0.24% against the dollar, reaching 1.1697.
