Markets on the Old Continent are catching their breath following yesterday's solid rebound (+1.12% in Paris and +1.27% in Germany). Investors remain optimistic, however, on hopes that negotiations between the United States and Iran may resume. Speaking on Fox News, Donald Trump stated that the war is "almost over," adding that Iranian authorities "really want to make a deal."

These announcements have allowed crude oil prices to trade at levels seen several weeks ago. In New York, WTI is up 2.60% at 92.53 dollars, while in London, North Sea Brent is gaining 0.90% to 96.03 dollars.

Luxury concerns

In France, the market is more hesitant, impacted by a heavy sell-off among luxury sector players. Kering is shedding 9.86% after reporting a 6% decline in first-quarter revenue to 3.57 billion euros, notably affected by the conflict in the Middle East.

Meanwhile, Hermès is tumbling 9.09%. The group also indicated it was being penalized by the war involving the United States, Israel, and Iran, with revenues coming in below forecasts after a 1.4% decline to 4.07 billion euros over the first three months of the year.

In the wake of Kering and Hermès, global sector leader LVMH is easing 0.11%. Even accounting for today's sharp decline, these three companies represent nearly 18% of the CAC 40's total market capitalization.

Autos and semiconductors in demand

Elsewhere in corporate news, Stellantis is posting the strongest gain on the Parisian index, rising 2.74%. The automaker unveiled a 12% increase in shipments to 1.4 million units for the first quarter, driven by North America (+17%) and Europe (+12%).

In Germany, Aixtron is a standout performer, soaring 13.55%. The deposition equipment supplier for the semiconductor industry notably raised several of its annual financial targets.

In Amsterdam, ASML is edging up 0.08% after the semiconductor equipment manufacturer published quarterly results that generally exceeded expectations.

Macroeconomics and currencies

On the macroeconomic front, market participants took note of French inflation data for March. Prices rose by 1%, compared to expectations of +0.9%, following a 0.6% increase in February. On an annual basis, the consumer price index came in at +1.7%, in line with forecasts. Unsurprisingly, these increases are attributed to rising energy prices (+8.9%), particularly oil (+17.1%).

In the eurozone, industrial production increased by 0.4% in February, 0.1 percentage points higher than anticipated.

This afternoon (2:30 PM), investors will focus on the New York Fed's Empire State Manufacturing Index for April. Following the European market close (8:00 PM), attention will turn to the release of the Fed's Beige Book, the U.S. central bank's report on economic conditions.

On the currency market, the euro is losing ground against the greenback (-0.15%), trading at 1.1781 dollars.