The CAC 40 experienced a tumultuous week from April 6 to 10, marked by significant fluctuations linked to the geopolitical context in the Middle East and a strong sensitivity to energy prices. Ultimately, the index ended on a notable increase, driven by several sessions of technical rebound following periods of high tension.
Volatility linked to tensions on oil
The week was dominated by concerns about the Strait of Hormuz and global energy supply. Successive announcements of a fragile ceasefire, followed by doubts about its implementation, led to rapid movements in the markets.
The price of Brent crude oil fluctuated around high levels, briefly surpassing $100 before slightly receding by the end of the period. These fluctuations directly influenced the behavior of the CAC 40, with a strong sensitivity to energy stocks.
Technical rebounds after periods of stress
After correction sessions linked to geopolitical tensions, the CAC 40 managed to regain ground through recovery movements. Several sessions showed significant progress, allowing the index to gain nearly 800 points from its recent lows at the beginning of the stress period.
This rebound was based on a gradual return of risk appetite, especially when markets perceived temporary calming signs on the diplomatic front.
Marked sectoral rotations
The week was characterized by a strong heterogeneity of performance:
- The technology and industrial sectors generally supported the trend, with renewed interest in semiconductors.
- Luxury experienced consolidation phases after a rapid rebound, as investors adjusted their positions.
- Defensive stocks were generally stable, while energy remained highly volatile.
A more constructive end to the week
Towards the end of the period, the trend improved, with the CAC 40 again on the rise, close to 8,300 points. The market benefited from a relative calm on the extreme tensions from earlier in the week, although geopolitical risks remain present.
Conclusion
The week of April 6 to 10 illustrates a market dominated by geopolitics, where economic fundamentals take a back seat. The CAC 40 remains in a phase of technical rebound, but its trajectory still heavily depends on the evolution of tensions in the Middle East and energy prices.
