Yesterday, Donald Trump deemed a peace deal with Iran 'very possible': 'We have had very good discussions in the last 24 hours and it is very possible that we will make a deal,' the U.S. President stated during an exchange with reporters in the White House Oval Office. However, he threatened a resumption of strikes in the event of a disagreement. 'It will be, unfortunately, at a level and with an intensity much stronger than before,' he warned.

'The enemy, in its new strategy, seeks through a naval blockade, economic pressure, and media manipulation to destroy the country's cohesion in order to force us to surrender,' countered Mohammad Ghalibaf, Speaker of the Iranian Parliament, in a voice message posted on his official Telegram channel, asserting that Washington was seeking Tehran's 'surrender' (cessation of combat).

Regarding the Middle East conflict, France has proposed to the United States and Iran to 'treat the Hormuz issue separately' during negotiations, as 'it is of common interest,' the Elysee Palace stated. 'The damage to the global economy is becoming increasingly marked and the risk of prolonged hostilities is too serious to be accepted,' the French government continued in a statement.

Against this heavy geopolitical backdrop, oil prices continued their retreat, falling below the 100-dollar mark. Brent tumbled 3.92% to 97.96 USD, while WTI lost 4.54% to 91.88 USD.

Flurry of earnings in Europe

In corporate news, the quarterly earnings season continued.

Legrand (+0.76%) was among the top gainers on the CAC 40. It even led the index this morning, buoyed by quarterly results that beat expectations. The electrical infrastructure specialist unveiled 'solid results, but driven almost exclusively by American data centers,' summarized Stifel. In the first quarter, group revenue reached 2.54 billion euros, up 11.4%, exceeding the consensus target of 2.47 billion euros.

Engie (-2.58%) also retreated within the Parisian blue-chip index, penalized by an underperformance in the first quarter of 2026. During this period, the natural gas and electricity provider generated revenue of 20.6 billion euros, down 11.6% on a reported basis and 9.5% organically. EBITDA stood at 4.7 billion euros, down 13.6% reported and 12.3% organically, against expectations of 4.6 billion euros.

Bouygues (-3.66%) posted the sharpest decline on the CAC 40 following mixed results for Q1 2026. Revenue fell 3.2% to 12.18 billion euros. The conglomerate narrowed its net loss to 94 million euros, compared to a loss of 156 million euros a year earlier. Conversely, current operating profit from activities (ROCA) came in at 77 million euros, up 8 million euros year-on-year.

In London, Shell (-3.11%) retreated despite a solid first quarter of 2026. The stock was weighed down by oil prices, which continue to decline on hopes of de-escalation in the Middle East. During the period, adjusted earnings rose to 6.9 billion USD, up 23.21% year-on-year, reflecting solid performance across its operations. Furthermore, revenue for the oil and gas producer remained nearly stable at 69.69 billion USD, compared to 69.23 billion USD in the same period last year.

In Milan, Campari (-14.45%) recorded the largest drop on the FTSE MIB on Thursday. The world's sixth-largest spirits group reported organic growth well below analyst expectations for the first quarter. Revenue decreased by 3.4% to 643 million euros, missing the 647 million euros targeted by the financial community. In its statement, the Milan-based group confirmed its annual targets provided in early March, still expecting to outperform the sector with underlying organic revenue growth projected at around 3%, consistent with 2025.

Rheinmetall saw one of the steepest declines on the Dax, losing 6.39% after results fell short of market expectations. Net income group share amounted to 111 million euros in Q1 2026, up 32% year-on-year, but below the estimated 119 million euros. EPS came in at 2.42 euros, signaling a substantial 26% annual increase, though consensus was even more optimistic at 2.67 euros. Revenue grew 8% year-on-year to reach 1.9 billion euros (versus a consensus of 2.24 billion euros).

On the macro front, retail sales in the Eurozone fell by 0.1% in March, following a 0.3% monthly increase in February, Eurostat announced Thursday. By comparison, economists had on average forecast a much sharper decline of 0.3%.

In France, the trade deficit widened in March to 6.86 billion euros, compared to 5.51 billion euros the previous month, according to seasonally and working-day adjusted data (SA-WDA). The customs administration explained that this month-on-month deterioration reflects a 3.2% jump in goods imports to 59.32 billion euros, which a mere 1% increase in exports to 52.46 billion euros failed to offset.