(News Bulletin 247) – The CAC 40 fell 0.6% at mid-session this Monday, as the market reacted to the Hamas attack on Israel this weekend. The defense is well oriented.
Geopolitical risk resurfaces this Monday. The Paris Stock Exchange fell and the CAC 40 dropped 0.6% mid-session to 7,018.38 points.
Investors are analyzing the situation in Israel where a Hamas terrorist attack this weekend. This Hamas attack, the largest in scale in decades, triggered a response in the Gaza Strip and made the market fear a risk of the conflict extending to other countries in the region, including those producing oil..
“The coming days may bring more clarity on how long this conflict will last. But in the short term, we expect higher oil prices and supportive flows into traditional safe havens like the yen and gold “, dissects Mark Haefele of UBS.
Gold rose 1% to $1,864 per ounce while the yen advanced 0.7% against the euro. Oil, very sensitive to geopolitical risk, especially in the Middle East, is growing. The December contract on Brent from the North Sea advanced 3.1% to 87.23 dollars per barrel while that of November on WTI listed in New York gained 3.4% to 85.62 dollars per barrel.
>> Access our exclusive graphic analyses, and gain insight into the Trading Portfolio
Defense on the rise
“For the markets, this increase in violence, with the rhetoric of support for the attack by the Iranian authorities, can only fuel fears about oil supplies, as has unfortunately been the case historically. It is too early to draw conclusions, but in the very short term, it is likely that a premium will be attached to the price of oil, causing it to rise again. Bad news for the world economy”, judges Sebastian Paris Horvitz of LBPAM.
The rise in oil prices is pulling with it the oil and oil services groups, Totalenergies advances by 1.7%, Schlumberger takes 3.7%.
But it is especially the defense groups that are making the most progress: Thales is up 4.7% and Dassault Aviation is up 4.4%.
Conversely, airlines are falling, penalized by the rise in oil prices, with fuel remaining the main item of expenditure for airlines. Air France-KLM lost 3.6%.
On currencies, the euro lost 0.6% against the dollar at 1.0531 dollars.
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
