Paris Bourse hits new records but closes flat amid Hormuz concerns

The Paris Stock Exchange achieved new record highs on Wednesday, though it ultimately closed almost stable as investors adopted a cautious stance. The CAC 40 index briefly touched new intraday and closing peaks, surpassing its previous records from Tuesday. However, the index finished the day with minimal gains, reflecting underlying investor apprehension.

Market sentiment was largely influenced by geopolitical tensions and anticipation surrounding a potential agreement concerning the Strait of Hormuz. Reports emerged that Iran and Oman had reached an accord on a new transit route for ships in the Strait, a critical global oil chokepoint. This development, while offering a glimmer of hope, did not fully alleviate broader concerns about regional stability.

“

In August, a month traditionally marked by lower trading volumes, markets should remain sensitive to geopolitical uncertainties and central bank decisions.

Analysts suggest that August, typically a period of lower trading volumes, could see markets remain sensitive to geopolitical events and central bank decisions. Key factors to watch include the ongoing focus on artificial intelligence as a growth driver and statements from new Federal Reserve Governor Kevin Warsh at the upcoming Jackson Hole symposium.

On the trading floor, the luxury group Kering and hospitality giant Accor saw gains, while telecommunications firm Publicis also performed well. Conversely, Orange experienced significant selling pressure, and chipmaker STMicroelectronics declined amid lingering doubts in the technology sector. In New York, concerns about AI investment returns also impacted markets, with SpaceX seeing a notable drop.

“

Attention will remain focused on AI, the main engine of growth currently, as well as on the statements of Kevin Warsh, new governor of the Fed, at the Jackson Hole symposium at the end of the month.