The lack of concrete progress regarding the conflict in the Middle East continues to weigh on markets, primarily due to a sharp resurgence in inflationary pressures linked to oil prices.

While currently almost flat in both London and New York, prices remain at particularly elevated levels: 110.28 dollars for North Sea Brent and 102.27 dollars for WTI.

According to Alexandre Baradez, Head of Market Analysis at IG France: 'uncertainty surrounding the situation in the Middle East pushed WTI crude prices above $108 overnight. It is worth noting that less than two weeks ago, on May 6, the barrel dipped below $90, representing a 20% rebound in just a few days. Natural gas prices are also recovering in Europe, returning to 52EUR/MWh, the highest level since early April'.

This price pressure continues to fuel fears of tighter monetary policies across major global economies to curb inflation, while also weighing on government bonds.

The French 10-year yield (+0.43% to 3.964%) is trading at levels unseen since May 2009, while its German equivalent (+0.55% to 3.1711%) has reached its highest point since April 2011.

The prevailing gloom on European markets is expected to persist throughout the session due to a lack of catalysts.

No macroeconomic data is scheduled for this Monday. Investors will have to wait until Tuesday for indicators on the health of the US housing sector, or Wednesday for British inflation. Thursday will be particularly busy with numerous statistics on private sector activity on both sides of the Atlantic.

Also on the weekly calendar, Nvidia's quarterly earnings, scheduled for Wednesday, will be closely monitored. The results from the world's largest market capitalization, valued at approximately 5,480 billion dollars, will serve as a pulse check for the AI sector.

Corporate News

Publicis Groupe stands out at the top of the CAC 40 (+2.49%). The company has entered into an agreement to acquire LiveRamp, a global data collaboration platform, for a total enterprise value of 2.17 billion dollars. Following this announcement, the French communications giant raised several of its financial targets. It now aims for constant currency growth of +7% for 2027 and +8% for 2028 for net revenue, and +8% and +10% respectively for earnings per share. Previously, revenue was expected at +6% in 2027 and +7% in 2028, with EPS at +7% and +9%.

Also trending higher, TP (formerly Teleperformance) jumped 7.35%, supported by Goldman Sachs raising its price target from 60 to 67 euros while maintaining a neutral rating, and by the launch of a bond refinancing operation aimed at optimizing its debt structure.

Conversely, in the red, Ipsen shed 4.76% despite generally encouraging results from a Phase II study. The latter focused on Corabotase for moderate to severe glabellar lines.

In the same sector, Nanobiotix fell 4.66%. This comes despite the company and its partner Johnson & Johnson presenting encouraging data from Part 1 of a randomized Phase 2 clinical trial.

In Europe, Ryanair slipped 0.86%, even though the Irish airline recorded a sharp increase in its annual results thanks to rebounding fares and sustained demand. However, Ryanair declined to provide a profit forecast for its 2027 fiscal year, citing geopolitical tensions and fuel volatility. This caution has cooled investor sentiment.