Markets are welcoming the announcement of a ceasefire between Israel and Lebanon, perceived as a first step toward regional de-escalation, while remaining attentive to the progress of discussions between Washington and Tehran.

This outlook has led to a slight retreat in oil prices, which nevertheless remain above 95 dollars per barrel.

However, optimism remains measured. Israeli Defense Minister Yoav Gallant stated that Israeli military operations would continue in southern Lebanon to 'dismantle terrorist infrastructure in the region'. He also emphasized Israel's freedom of action, supported by the United States, to respond to potential attacks on its territory.

Furthermore, Israel and Lebanon have agreed to resume discussions in a new round of negotiations scheduled for the week of June 22, aiming for a 'comprehensive agreement'. Donald Trump, however, indicated on Wednesday his desire to decouple discussions on Lebanon from those concerning Iran, an approach that Tehran rejects.

As the conflict has become protracted, markets are showing significant resilience despite the uncertainty. While the most pessimistic scenarios have become less likely thanks to attempts to resolve the crisis, 'the duration of the conflict will continue to determine the extent of its consequences on the global economy', noted Benoit Peloille, Chief Investment Officer at Natixis Wealth Management, during a press briefing this morning.

The strategist nevertheless warned of persistent risks in the region: 'Despite the ceasefire, traffic remains largely disrupted in the Strait of Hormuz. Iran retains significant nuisance power despite the military losses sustained. Beyond oil, several sectors, notably petrochemicals and fertilizers, are affected. Freight costs remain high and are expected to stay that way. Without a swift resolution to the conflict, the risk of shortages becomes real.'

On the macroeconomic front, Eurozone retail sales fell more than expected in April. They declined by 0.4% month-on-month, compared to economists' expectations of a 0.3% drop, following a revised 0.8% increase in March. On an annual basis, however, growth reached 1%, exceeding the 0.3% forecast.

In the afternoon, traders will monitor weekly jobless claims in the United States, which are expected to show a slight decline.

Stocks in motion

On the Paris bourse, Remy Cointreau is soaring after announcing it aims for a return to organic sales growth during the 2026-2027 fiscal year, accompanied by a slight improvement in its current operating margin. This outlook follows the publication of weakened annual results, which were nonetheless in line with market expectations.

Pirelli is shedding 1.22% in Milan. The Italian manufacturer is being weighed down by a report from short-seller Grizzly Research, which alleges a 'secret dependence' on Russia, a claim rejected by the group.

Conversely, Puma is jumping 5% after Citigroup upgraded its recommendation from 'neutral' to 'buy'.

In the foreign exchange market, the euro is advancing 0.15% to 1.1626 dollars.