(AOF) – Values in the defense and raw materials sectors appear at the top of the CAC 40 following the Hamas attack on Israel last Saturday, reigniting geopolitical tensions in the Middle East. Thales moves to the top of the Parisian market’s flagship index, gaining 4.65% to 133.95 euros. Behind, TotalEnergies occupies second place in the CAC 40, increasing 1.96% to 61.52 euros. This unexpected increase in tension led to a sharp increase in commodity prices. The barrel of Brent gained 2.8% to more than 86.92 dollars.
The price of a barrel of WTI rose 3.13% to more than 85.38 dollars. An ounce of gold, a safe haven, increased by more than 1% to $1,865.
If Thales dominates the CAC 40, its largest shareholder, Dassault Aviation (+4.27% to 180.80 euros) signs one of the biggest increases in the SBF 120. The manufacturer of the Rafale is ahead of CGG (+3.65% to 0.6594 euros) and Vallourec (+3.13% to 10.725 euros), other oil-related stocks, which benefit from the progression of black gold.
Thales had recorded the largest increase in the CAC 40 in 2022 (+59.49%). The aerospace, defense and security equipment manufacturer had seen its stock market fortunes shaken by the war in Ukraine. This war of conquest, the first in Europe since the Second World War, and of high intensity, had highlighted the need to sharply increase defense spending.
The events of the weekend confirm such a scenario. Investors are also worried about a widening of the conflict to Iran, the Islamic Republic being a major supporter of Hamas.
If Airbus (-0.43% to 123.74 euros) is also present in the defense sector, developments in the situation in the Middle East risk penalizing airlines, customers of Airbus.
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