The CAC 40 index increased by nearly 100 points, closing at 8,244.29, a rise of 1.15%. This comes after a previous decline of 0.71%, where it ended at 8,150.42. Major movers included Capgemini, which gained 6.61% to reach €104.20, and Dassault Systèmes, up 5.94% to €20.16.
Investor Reactions and Market Trends
Conversely, STMicroelectronics saw a drop of 2.58% to €66.72 as investors sold off shares. This decline follows a significant increase in the stock throughout the year, driven by excitement over artificial intelligence (AI) infrastructure developments. The downturn at the NASDAQ in New York also affected sentiment. Broadcom’s stock fell nearly 13% in late trading, as the semiconductor giant failed to raise its annual forecast.
High Expectations for Growth
Kevin Thozet, a portfolio advisor at Carmignac, noted, “Investor expectations are high. They believe growth is positive, but caution is needed regarding growth costs.”
Impact of Oil Prices on European Markets
Paris, like other European exchanges, benefited from a drop in oil prices amidst ongoing uncertainties. The Strait of Hormuz, which is crucial for global oil supply, remains closed, affecting 20% of worldwide consumption. This situation has contributed to inflationary supply shocks.
- Brent crude fell by 3.23% to $94.65 per barrel.
- WTI price was down by 3.80% to €92.37.
While prices decreased, concerns about a global growth slowdown were raised by Fitch. The agency downgraded its global growth projections by 0.2 percentage points to 2.4% due to the ongoing oil crisis.
Geopolitical Tensions and Economic Effects
On the geopolitical front, Iranian Supreme Leader Mojtaba Khamenei claimed significant setbacks for the United States and Israel amid ongoing peace negotiations that have stalled, particularly concerning Lebanon. The focus on these developments continues to impact market sentiments and economic forecasts.
