In Paris, the CAC 40 spent the entire session below its break-even point, closing down 0.71% at 7,984.44 points. The FTSE 100 in London followed suit, losing 0.59% to end at 10,292.46 points. The DAX 40 also finished the day in the red, despite a brief mid-session foray into positive territory. Ultimately, the Frankfurt Stock Exchange index shed just 0.29%, closing at 23,572.44 points.

Investors' eyes remain fixed on the Middle East, and those who believed Donald Trump when he suggested days ago that the conflict would be short-lived are now feeling the sting of regret. Meanwhile, Israel Katz, the Israeli Defense Minister, recently indicated that the offensive against Tehran will continue "as long as necessary, until we achieve all objectives and decide on the outcome of the campaign."

Iran's strategy appears to be one of attrition, aimed at forcing its adversaries into heavy spending. The Islamic Republic also intends to leverage its geographical advantage by blocking the Strait of Hormuz, through which 20% to 25% of the world's oil passes, along with numerous other commodities. In a message published this Thursday, the new Supreme Leader, Mojtaba Khamenei, called for the continued blockade of this narrow passage.

Overnight, two Iraqi tankers sailing in international waters were attacked. Consequently, oil prices resumed their upward trajectory. The announcement of the release of 400 million barrels from the strategic reserves of International Energy Agency member countries did little to calm tensions. At the European close, WTI in New York was up 2.66% at $94.91, while North Sea Brent rose 6.28% to $99.47.

Addressing concerns over crude prices, Donald Trump stated on X: "the United States is by far the largest producer of oil in the world, so when oil prices go up, we make a lot of money. BUT what interests and matters to me much more, as president, is preventing an evil empire, Iran, from obtaining nuclear weapons and destroying the Middle East and, in reality, the world."

Corporate News...

Abivax saw significant interest early in the session, jumping as much as 18% before eventually closing up 6.75%. According to La Lettre, the French biotech firm has granted AstraZeneca exclusive access to its data until March 23. Until that date, the Swedish-British pharmaceutical group has the option to launch a public takeover bid (TOB). However, a spokesperson for the group denied these rumors to Bloomberg.

JC Decaux surged 14.77%, posting the best performance on the SBF 120 index following a solid annual report and favorable outlook. The group notably revealed a net profit of 262.6 million euros, up 22.8%, excluding the exceptional capital gain recorded in 2024 from the sale of shares in the Swiss group APG SGA.

In Germany, Zalando stood out with a 9.80% jump. The group published fourth-quarter results significantly higher than analyst expectations and unveiled encouraging forecasts for its 2026 fiscal year.

Meanwhile, BMW finished up 0.93%, despite 2026 targets that held no surprises but which Oddo BHF believes will be difficult to achieve.

In Milan, Leonardo shares jumped 5.69%. The Italian defense and aerospace group presented an update to its 2026-2030 industrial plan. Leonardo anticipates strong growth in its main financial indicators by 2030, driven by growth in security technologies and multi-domain capabilities. It notably targets revenue of 30 billion euros in 2030, compared to the 19.5 billion euros expected in 2025, representing an increase of approximately 54% over the period.

Also in Italy, Salvatore Ferragamo shares gained 10.93%. The Italian luxury house reported a decline in 2025 revenue and annual losses, but the fact that these results were less severe than anticipated was viewed by investors as the first sign of a potential recovery.

Macroeconomic Data and Currencies...

On the statistical front, the news was primarily American. Weekly initial jobless claims came in almost exactly as forecast at 213,000, against the 214,000 expected. The previous week's data was slightly revised upward from 213,000 to 214,000 units.

Also in the U.S., the trade deficit was smaller than expected, settling at $54.50 billion in January, compared to an estimated $66.60 billion.

On the currency market, the euro lost ground against the greenback (-0.15%), trading at $1.1525.