Equity markets are welcoming Donald Trump's announcement regarding the implementation of a ceasefire between Israel and Lebanon, even as Beirut accuses the Hebrew State of already violating the truce, an action that reportedly led Hezbollah to target Israeli soldiers in retaliation.

More broadly, investors are choosing to believe that the bumpy road toward peace will translate into concrete progress in the coming days and weeks, bolstered by new direct discussions between Washington and Tehran.

"Everything indicates that we are going to reach a deal with Iran, and it will be a good deal," Donald Trump stated, predicting a "fairly rapid" agreement that could lead to an extension of the current two-week ceasefire.

Amid this geopolitical lull, oil prices are easing slightly on Friday: Brent crude is down 2% toward 96 USD per barrel, while West Texas Intermediate (WTI) is tumbling more than 5% toward 88 USD.

A "tactical relief rally," according to Franklin Templeton

"We view the recent market movement as a tactical relief rally, rather than a sustainable normalization," cautioned Stephen Dover, Head of the Franklin Templeton Institute at Franklin Templeton.

"Shipping conditions through the Strait of Hormuz remain far from normal," he noted, highlighting that between 15% and 20% of the world's crude oil, natural gas, fertilizers, and petrochemicals transit through this strait.

"In this context, we believe it is appropriate to remain invested while maintaining strict discipline regarding asset quality, valuation, and position sizing," the market professional judged.

However, Stephen Dover advises maintaining broad exposure to equities, seeing "potential for further upside if earnings hold up and geopolitical risks do not significantly re-intensify."

Eurozone trade surplus drops in February

In the morning's only notable data release, the Eurozone trade surplus stood at 7 billion EUR in February 2026, a significant decline from January (12.8 billion EUR), driven by a 3.5% increase in imports, which far outpaced the 0.9% rise in exports.

For the EU as a whole, the trade surplus fell from 10.4 billion EUR in January to 3.7 billion EUR the following month, a decrease reflecting a 3.6% jump in imports, while exports remained nearly flat (+0.2%).

Alstom and Ipsos hammered following earnings releases

In Paris corporate news, Alstom is plunging 29% after the rail equipment manufacturer issued a profit warning following its results, which featured an adjusted operating margin approximately 100 basis points below forecasts.

Similarly, Ipsos is shedding 14% after the market research specialist reported weaker-than-expected quarterly revenue. However, group executives indicated they expect an improvement during the course of 2026.

At the bottom of the CAC 40, Orange is losing 3% following the announcement by the telecom operator, jointly with Free and Bouygues Telecom, of a new offer and their entry into exclusive negotiations with Altice France for the acquisition of SFR.

Elsewhere in Europe, Ericsson managed to gain 1% in Stockholm: although the telecom equipment provider unveiled disappointing first-quarter figures, its share buyback program appears to be soothing investor concerns.