Geopolitical anxieties were reignited around the Strait of Hormuz, amid conflicting reports between Tehran and Washington regarding a maritime incident. Simultaneously, the United Arab Emirates reported missile fire originating from Iran, which was largely intercepted, though one projectile landed at sea. A South Korean vessel was also struck by an explosion followed by a fire in the area, with no casualties reported.

Against this backdrop, oil prices rose sharply, with Brent crude gaining 5.32% to 113.99 dollars per barrel and WTI climbing 3.52% to 105.25 dollars.

On the macroeconomic front, U.S. factory orders rose by 1.5% in March, exceeding expectations.

In Europe, manufacturing activity indicators confirmed an improvement: in France, the PMI rose to 52.8, its highest level since May 2022, while the Eurozone figure reached 52.2, a near four-year high. In Germany, the index stood at 51.4. Furthermore, Eurozone investor sentiment recovered in May, with the Sentix index coming in at -16.4, beating forecasts.

Regarding individual stocks, Soitec stood out at the top of the SBF 120 with a 20.91% surge, bolstered by a favorable note from Deutsche Bank, bringing its year-to-date gain to over 560%. Conversely, EssilorLuxottica (-4.41%) and Société Générale (-3.97%) were among the steepest decliners on the CAC 40, while Capgemini (+3.01%) and STMicroelectronics (+2.15%) managed to outperform.

The German automotive sector was hit by Donald Trump's announcement of plans to raise tariffs on European vehicles to 25%. Consequently, Porsche, Mercedes, BMW, and Volkswagen recorded marked declines.

Finally, on the foreign exchange market, the euro retreated slightly by 0.24% against the dollar, trading at 1.1697.