Paris Stock Exchange saw a substantial rise of 1.52% amid hopes for peace negotiations in Ukraine, positively affecting energy prices. Key players like President Trump and European leaders are pushing for negotiations, while falling energy prices benefit the industrial sector. Notable stock increases included Legrand’s 9.02% rise due to strong 2024 results and EssilorLuxottica’s 7.17% surge after reporting record profits. Michelin’s stock also climbed despite a profit decline, supported by ongoing share buyback plans.
Paris Stock Exchange Soars on Peace Negotiation Hopes
The Paris Stock Exchange experienced a significant surge on Thursday, fueled by optimism surrounding potential peace talks in Ukraine, which positively impacted energy prices. The CAC 40 index finished the day up by 1.52%, reaching 8164.11 points, marking an increase of 121.92 points. This rise follows a modest gain of 0.17% the previous day, when the index settled at 8042.19 points. In a pivotal phone conversation with Donald Trump, Russian President Vladimir Putin expressed his willingness to “immediately” engage in negotiations to conclude the ongoing conflict in Ukraine, which has resulted in substantial casualties on both sides.
Market Reactions and Key Players
President Trump announced plans to meet with Putin in Saudi Arabia, prompting European leaders to insist on their inclusion in the negotiations. Ukrainian President Volodymyr Zelensky has urged Washington to establish a strategy to “halt Putin” before any discussions with Moscow commence.
While the negotiations are still being organized, the very act of initiating discussions has led to a decrease in oil and energy prices, as well as a dip in the value of the US dollar, according to Neil Wilson, an analyst at TipRanks. The prospect of renewed Russian gas supplies significantly impacted the price of European natural gas on Thursday. Wilson notes that this dynamic has been favorable for European equities.
Alexandre Baradez, head of market analysis at IG France, highlighted “a primary reaction” from equity markets, particularly in Europe. He pointed out that the market perceives these developments as potentially paving the way for a restoration of normal gas and oil delivery flows to Europe. Falling energy prices are advantageous for the European industrial sector, Baradez added.
Company Highlights
French electrical equipment manufacturer Legrand saw its stock rise by 9.02% to 106.40 euros following the announcement of promising results for 2024. The company reported a 1.6% increase in net profit, totaling 1.16 billion euros, largely driven by a 15% organic growth in its data center segment.
Optical giant EssilorLuxottica, known for its Ray-Ban brand, also reported a “record profit” for 2024. The company, which is diversifying into connected glasses and hearing solutions, posted a net profit of 2.36 billion euros, reflecting a 3% increase, alongside a 4.4% rise in revenue to 26.5 billion euros. Following these results, EssilorLuxottica’s shares surged by 7.17%, reaching 295.80 euros.
Additionally, Michelin, the French automotive equipment manufacturer, experienced a 4.86% increase in its stock price, reaching 34.06 euros on the Paris Stock Exchange. Despite a 4.7% decline in net profit to 1.9 billion euros for 2024, the tire manufacturer announced plans to continue its share buyback program and will pay a dividend of 1.38 euros per share.