French stocks experienced a significant uptick on Monday, buoyed by a reduction in worries regarding Middle East tensions and declining oil prices, which fostered a favourable sentiment and prompted robust buying across various counters. Oil prices experienced a significant decline following the weekend’s cessation of military strikes between Iran and the U.S., creating an opportunity for diplomatic discussions aimed at preventing a resurgence of full-scale conflict.
Following the United States’ decision to halt its military strikes against Iran for a second consecutive night, Iran ceased its counterattacks. Reports indicate that Pakistan is considering a route toward renewed discussions between the U.S. and Iran aimed at resolving the ongoing conflict. Brent crude futures declined to $84.91 a barrel, reflecting a decrease of over 8%. France’s benchmark index CAC 40, which previously reached 8,463.71, increased by 63.17 points or 0.75% to 8,435.45 shortly after noon.
- Capgemini experienced an increase of 3.75%. Kering, Renault, and Safran experienced increases of 2.7%, 2.5%, and 2.4%, respectively.
- BNP Paribas, Hermes International, STMicroelectronics, Pernod Ricard, Michelin, and Dassault Systemes experienced an increase of 2% to 2.2%.
- Societe Generale, EssilorLuxottica, Euronext, Carrefour, Sanofi, Schneider Electric, Airbus, Accor, Saint-Gobain, ArcelorMittals, Accor, LVMH, and Bureau Veritas experienced gains ranging from 1% to 1.8%.
- Among the underperformers, TotalEnergies declined approximately 3.3%, impacted by a significant decrease in oil prices.
- Engie experienced a decline of 1.1%, whereas both Bouygues and Stellantis saw a decrease of 0.7%.
In economic news, loans to the euro area private sector exhibited consistent growth in June, as indicated by data released by the European Central Bank on Monday. Adjusted loans to the private sector rose by 3.9% year-on-year in June, maintaining the same growth rate observed in May.