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Paris Stocks Tick Higher as Brent Slips After Pause in U.S. Strikes on Iran

Lower oil prices have reduced the geopolitical risk premium, easing energy-driven inflation pressure before major central-bank decisions.

Overview

  • Markets rose in Paris with the CAC 40 up about 0.6% at 8,422.65 as lower crude and calmer geopolitical headlines improved investor sentiment.
  • Brent crude fell to roughly $90 a barrel after no new U.S. strikes in Iran were reported since Friday evening, a pause analysts say trimmed the risk premium on oil.
  • Energy producers suffered losses, with TotalEnergies and Maurel & Prom among the decliners, while energy-intensive industrials such as Saint-Gobain and ArcelorMittal advanced.
  • Analysts at CMC Markets and XTB said the weekend lull in hostilities materially eased market fears, but they stressed durability of the calm will determine if oil stays lower.
  • Traders are now focused on coming central-bank decisions and heavyweight tech earnings, developments that could reverse or amplify today’s moves and affect inflation and borrowing costs.