A new signal of easing tensions

The U.S. President continues to multiply reversals in the Middle East conflict, which is now entering its 68th day. On the social network Truth, POTUS announced he had taken this new decision to see if 'a deal can be finalized and signed' with Iran, after the American president described 'great progress' in negotiations. He stated that this pause was decided at 'the request of Pakistan and other countries,' while maintaining the U.S. blockade of Iranian ports, which came into effect on April 13.

'Project Freedom,' intended to allow hundreds of ships blocked in the Gulf to transit the strait, was launched on Monday.

Furthermore, the White House believes it is close to a preliminary agreement with Iran to end the war and reopen a more structured phase of nuclear negotiations, according to information obtained by Axios, which has been the most prominent publication on U.S. diplomacy for several weeks. The project would take the form of a one-page, 14-point memorandum, negotiated by Donald Trump's envoys, Steve Witkoff and Jared Kushner, with several Iranian officials, either directly or via mediators. Nothing has been concluded yet, but U.S. officials cited by Axios believe that discussions have never been this advanced since the start of the conflict.

In addition, the head of U.S. diplomacy assured earlier yesterday that the offensive phase of the conflict with Iran was over. 'The operation is finished. As the President has signified to Congress. We have passed that stage,' affirmed Marco Rubio during a press briefing at the White House.

In Tehran's ranks, the Revolutionary Guards are promising a 'firm response' to vessels attempting to cross the Strait of Hormuz other than by their designated route. 'Any diversion of ships to other routes is dangerous and will lead to a firm response,' they warned in a message relayed by the Fars agency. This statement comes as the United States conducts its 'Project Freedom' operation.

In this still heavy geopolitical context, oil prices are tumbling, continuing their downward trend. Brent fell 7.24% to 102.32 dollars. WTI lost 8.11% to less than 100 USD (94.30).

AXA and Veolia gain, Viridien plunges

In corporate news, Axa (+4.07%) is among the strongest gainers on the CAC 40 on the back of its strong results. In the first quarter of 2026, gross written premiums and other revenues rose by 6% to 38.0 billion euros. Regarding the outlook, the group indicates it is on track to achieve underlying earnings per share growth at the high end of the 6% to 8% target range for 2026.

Veolia (+1.4%) also posted one of the strongest increases within the Parisian flagship index. Shares of the world leader in environmental services are supported by a solid operational performance, rising profitability in the first quarter of 2026, and the confirmation of its annual forecasts. Its EBITDA, in line with expectations, amounted to 1.766 billion euros, representing 5.1% growth on a constant scope and exchange rate basis, with the margin increasing by 73 basis points. 'This EBITDA growth is driven by price, productivity, and efficiency effects, with efficiency gains of 96 million euros in the first quarter, in line with the annual target of over 350 million euros,' Veolia emphasized.

Conversely, Viridien plummeted by more than 15%, marking by far the largest decline on the SBF 120. The group is penalized by a 29% year-on-year decline in its segment revenue, which amounted to 214 million dollars. Profitability fell by 47% over one year due to the decline in activity, with an adjusted segment EBITDAs of 76 million USD. Despite disappointing results, it confirmed its 2026 target for net cash flow generation of 100 million USD.

In Europe, Novo Nordisk (+6.59%) is particularly well-supported on the Copenhagen Stock Exchange, following a slight upward revision of its annual targets and solid quarterly results. The Danish laboratory unveiled reported revenue up 32% to 96.823 billion Danish kroner (approximately 13 billion euros) in the first quarter of 2026. Reported operating profit surged 65% to 59.618 billion DKK.

Diageo, the world's leading spirits maker, returned to organic growth in the third quarter of its fiscal year thanks to a recovery in activity in Europe, sending its share price higher on the FTSE 100 (+4.77%). Organic revenue growth came in at 0.3% for the quarter ended late March, well above market expectations which anticipated a 2.3% decline.

Continental (+7.57%) regained traction thanks to better-than-expected profitability: adjusted EBIT climbed to 522 million euros and the margin rose to 11.9%. The market welcomed the cost discipline and the refocusing on tires, even if the recent rise in raw materials remains a thorn in the side.

Eurozone: private sector activity at 17-month low in April

On the statistical front, in the Eurozone, according to the S&P Global PMI index, activity in the services sector entered a contraction phase in April, but deteriorated less than expected. The index measuring it fell from 50.2 to 47.6 points, where analysts feared a drop to 47.4 points. At 47.6 points, it is at a 62-month low.

Falling to 47.6 in April from 48.8 in March, the S&P Global composite PMI for activity in France retreated again last month, indicating the sharpest contraction in French private sector activity in just over a year. It was the contraction in the services sector that led the decline in overall private sector activity in April, as output and new orders increased in the manufacturing sector.

In Germany, in April, activity in the German services sector deteriorated in line with expectations. The index measuring it fell from 50.9 to 46.9 points. Meanwhile, the Composite PMI, which synthesizes activity in services and the manufacturing sector, fell less than expected. It settled at 48.4 points, in a contraction phase below 50 points, compared to 51.9 a month earlier, and expectations of 48.3 points. This is its first contraction in nearly a year.

Furthermore, in March 2026 in France, production increased significantly in manufacturing (+1.2%) after being nearly stable the previous month (-0.1%), and rebounded in industry as a whole (+1% after -0.9% in February), according to Insee.

Industrial producer prices increased by 3.4% in the Eurozone and by 3.2% in the EU in March 2026 compared to the previous month, according to initial estimates from Eurostat, the statistical office of the European Union. Unsurprisingly, this jump in producer prices in the Eurozone was largely driven by an 11.1% surge in energy prices, amid soaring oil and gas prices in the context of the war in the Middle East.

On the foreign exchange market, around 12:00 p.m., the euro rose by 0.69% to 1.1777 USD.