French stocks exhibited a varied performance on Monday morning, as investors maintained a cautious stance in light of the uncertainty surrounding U.S.-Iran peace negotiations. Concerns regarding inflation stemming from elevated crude oil prices, coupled with data indicating a contraction in French manufacturing activity for the month of April, contributed to a negative sentiment.

Brent crude futures increased by over 3% following the exchange of fire between Iran and the U.S. over the weekend, alongside Israeli troops capturing the strategic site of Beaufort Castle in southern Lebanon, marking the most significant incursion into the country in over 25 years. Israeli Prime Minister Benjamin Netanyahu characterised the capture of the strategic fortress as a ‘decisive shift’ in Israel’s campaign against Hezbollah. French benchmark CAC 40 increased by 2.61 points, reflecting a rise of 0.03%, reaching 8,185.95 just before noon.

• Schneider Electric experienced an increase of 3.3%, whereas Dassault Systemes, Capgemini, and STMicroelectronics saw gains ranging from 2.2% to 2.5%.
• Legrand experienced an increase of 1.7%.
• ArcelorMittal, TotalEnergies, Engie, and Societe Generale experienced increases ranging from 0.8% to 1.2%.
• BNP Paribas and Michelin recorded slight increases.
• Renault experienced a decline of approximately 1.8%, while Airbus recorded a decrease of 1.4%.
• Thales, Pernod Ricard, Stellantis, EssilorLuxottica, AXA, Euronext, Veolia Environment, Bouygues, Safran, Saint Gobain, Kering, and Sanofi experienced declines ranging from 0.5% to 1.1%.

Data indicated that France’s S&P Global Manufacturing PMI decreased to 49.7 in May, down from 52.8 in April, thus returning to a state of contraction, albeit surpassing the preliminary estimate of 48.9. Meanwhile, the final Manufacturing PMI reading for the eurozone in May registered at 51.6, a decline from the 52.2 observed in April.