At the closing bell, the CAC 40 climbed 1.83% to 8,350.87 points, marking its first finish above the 8,300 level since April 20. For the week, the Parisian index rose 1.61%, its fourth consecutive weekly gain: a performance not seen since mid-April, when hopes first emerged for the reopening of the Strait of Hormuz.

Other European markets followed suit: the DAX 40 in Frankfurt appreciated by 1.66%, the FTSE 100 in London gained 1.52%, and the pan-European Euro Stoxx 50 index advanced 2.01%.

Last night, Donald Trump mentioned the continuation of negotiations with the Islamic Republic and, consequently, decided to cancel planned strikes and bombing. He added that "the discussions and final points have been approved, both in principle and in the smallest details, by all parties involved, including the United States, Israel, Saudi Arabia, the United Arab Emirates, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt and others. The naval blockade will remain fully in effect until the finalization of this transaction: the date and location of the signing will be announced shortly."

Tehran indicated via a Foreign Ministry spokesperson that "the document is being finalized in its largest part." A few days ago, Iranian political officials reiterated "the priority given to diplomacy rather than military confrontation."

Investors welcomed these statements, and the relief was equally palpable in the commodities sector. Oil prices fell, with WTI in New York dropping 1.82% to $84.46 and North Sea Brent in London sliding 2.31% to $87.10. Crude prices are at their lowest since mid-April for WTI and their lowest since March 5 for Brent, just days after the start of hostilities in the Middle East.

On the currency market, at the European close, the euro remained nearly stable against the greenback, trading at $1.1578.

Macroeconomic Overview

On the statistical front, French inflation rose by 0.1% in May, as expected, bringing the annual rate to 2.4%. This also met expectations and marked an acceleration from April's 2.2%.

In Germany, the consumer price index fell by 0.2% over the same period, in line with forecasts, following a 0.6% increase in April. On an annual basis, inflation slowed to a rate of +2.6%, compared to +2.9% a month earlier.

US investors also digested the University of Michigan consumer sentiment index, which rose from 44.8 in May to 48.9 points in June, beating expectations of 46.1 points and reaching a level not seen since last April.

Also notable this week was the European Central Bank's decision, as expected, to raise its key interest rates by a quarter point. During her press conference yesterday, Christine Lagarde specified that the Governing Council will continue to follow a "data-dependent and meeting-by-meeting approach," suggesting the Council has not committed to any specific trajectory.

Stocks in Motion

The day was naturally dominated by the SpaceX IPO in the United States. According to Moritz Henkel, product manager at VanEck: "The SpaceX IPO stands out for its exceptional scale: a target valuation of $1,750bn and a potential capital raise of $75bn, making it the largest in history. Yet, its most unusual feature may be its low initial free float, a factor so impactful that it has already prompted index providers to modify their rules, introducing accelerated entry mechanisms and relaxing minimum float requirements to accommodate this listing."

In Europe, Euronext conducted its traditional quarterly review, deciding to add Abivax, Ipsen, and Soitec to the CAC Next 20, replacing ADP, Gecina, and Valeo. Two entries are planned for the SBF 120: Maurel & Prom and Mersen, at the expense of Elior Group and Nexity. These changes within the Parisian indices will take effect on Friday, June 19, after the market close. No changes were made to the CAC 40.

Among the day's major movers, Air France-KLM surged 8.36% on hopes of a peace deal, which would lower crude prices and provide relief to airlines heavily dependent on jet fuel.

Conversely, oil companies were largely shunned, with TotalEnergies losing 2.08%.

Meanwhile, Eramet soared 11.01%. According to AlphaValue, an American-Emirati consortium may be interested in taking a stake, specifically by acquiring the Duval family's holding.

Finally, Exail Technologies plummeted 16.17%. Last night, the French specialist in maritime drones and navigation systems reported a dispute with its financial partner ICG regarding the group's refinancing. While analysts view the episode as a short-term negative, none have questioned the group's operational outlook.