European markets show cautious optimism as US-Iran talks take center stage
With the exception of London, which edged down slightly (-0.07%), European stock markets closed the final session of the week in positive territory. Equities rebounded this Friday, buoyed by hopes of a de-escalation between the United States and Iran. Negotiations are set to begin this Saturday between the two nations in Islamabad, Pakistan, aimed at finding a favorable resolution to the Middle East conflict. The CAC 40 gained 0.17% to 8,259.60 points. The Parisian benchmark index extended its weekly gains to 3.73%, marking its best weekly performance in nearly a year (since late April 2025). The Eurostoxx 50 advanced 0.63% to 5,933.45 points.
Published on 04/10/2026 at 11:54 am EDT
Contact us to request a correction
Following the announcement of a ceasefire three days ago, ahead of the ultimatum Donald Trump had set for Iran, the White House incumbent has stepped up verbal attacks against Tehran.
On the third day of this fragile truce, the US President posted a message on his Truth Social platform regarding "reports that Iran is charging fees to tankers crossing the Strait of Hormuz," a waterway controlled by Tehran that had been blocked in recent weeks.
"Very soon, you are going to see oil start to flow, with or without Iran's help," the US head of state also asserted in a second message a few minutes later.
Then, in a third message sent last night, he suggested that "Iran is doing a really bad job, unworthy some would say, of allowing oil to pass through the Strait of Hormuz."
For Michaël Nizard, Head of Multi-Asset & Overlay at Edmond de Rothschild Asset Management (France), "this respite, secured under heavy international pressure, rested on one central condition: the reopening of the Strait of Hormuz, a vital artery of the global oil trade. The agreement reached primarily addresses an emergency: avoiding a shift into an extreme scenario combining massive US strikes, a lasting blockade of the Strait of Hormuz, and Iranian retaliatory measures against Gulf countries' production capacities."
"This strait accounts for a significant portion of global oil and gas exports; its prolonged closure would have had major consequences for energy prices, global inflation, and growth," he added.
Americans and Iranians in 15-day negotiations in Pakistan
As strikes intensify between Israel (a US ally) and Lebanon (an Iranian ally), US Vice President JD Vance will lead the American delegation to Islamabad, Pakistan, to begin extensive discussions this Saturday with Iran to reach a peace agreement, alongside special envoy Steve Witkoff and Jared Kushner, Donald Trump's son-in-law, the White House announced. The talks are scheduled to last 15 days.
In this regard, an Iranian delegation has arrived in Islamabad, according to the Wall Street Journal, citing sources close to the matter. It is led by Iranian Foreign Minister Abbas Araghchi and the Speaker of the Iranian Parliament, Mohammad Bagher Ghalibaf, according to the US daily.
"As the President of the United States said, if the Iranians are ready to negotiate in good faith, we are fully prepared to extend a hand," said JD Vance, but "if they try to play us, they will find that our negotiating team will not be very receptive. We are therefore going to try to conduct positive negotiations," the US Vice President added.
On the 41st day of the Middle East conflict, oil prices remain below the 100-dollar mark. Around 5:45 p.m., Brent rose 0.53% to 96.92 USD. WTI gained 1.27% to 99.09 USD.
Beyond the Middle East crisis, a peace agreement is reportedly close to being reached between Ukraine and Russia, according to Volodymyr Zelensky's top advisor, as reported by Bloomberg News this Friday.
Sodexo tumbles, Soitec and STMicroelectronics rally
In corporate news, Sodexo (-10.60%) plummeted, finishing at the bottom of the SBF 120, following the announcement of a downward revision to its annual targets. Alongside the publication of its sharply lower results for the first half of its 2025/2026 fiscal year, the catering group now targets organic revenue growth of between 0.5% and 1%, compared to +1.5% to +2.5% previously. The reason for this revision: "weaker commercial momentum during this half-year, as well as volumes lower than forecasts, in an uncertain external environment."
Soitec, by contrast, surged 19.01%, firmly holding the top spot on the SBF 120. The semiconductor materials producer benefited from the solid performance of TSMC. The Taiwanese semiconductor leader recorded revenue of 1,130 billion Taiwan dollars, or 35.6 billion USD, in the first quarter, up 35% year-on-year and slightly above expectations. Momentum accelerated particularly in March, with a 45.2% increase, reflecting strong demand for latest-generation chips used in artificial intelligence infrastructure.
TSMC's strong results also benefited STMicroelectronics, which finished at the top of the CAC 40 with a gain of 3.69%.
In Europe, Brunello Cucinelli (+5.25%) was among the strongest gainers on the FTSE MIB in Milan, thanks to better-than-expected results for the first quarter of 2026. The Italian cashmere specialist announced last night that its sales at constant exchange rates increased by 14% to 369 million euros over the first three months of the year, while the consensus had predicted average growth of 10% to 361 million. In detail, growth was driven by the Americas region (20.3% at constant exchange rates) and Asia (17.8%).
US inflation accelerates slightly less than expected in March
Regarding economic data, investors took note of the Consumer Price Index (CPI) in the United States for March. It increased at an annual rate of 3.3%, a sharp rise from the 2.4% observed the previous month, but Jefferies had expected a surge to 3.5%.
The Department of Labor, which publishes these figures, specified that in core data (excluding energy and food products), the annual US inflation rate stood at 2.6%, compared to 2.5% in February, but compared to the 2.7% expected by Jefferies.
"The first US inflation figure since the start of the war in Iran shows, unsurprisingly, a sharp acceleration due to the surge in prices at the pump. This does not necessarily imply that the Fed will raise its key rates, as a resolution of the situation in the Strait of Hormuz could undo much of the movement observed this month. Indeed, the minutes of the last FOMC show that Fed members will take their time to analyze the effects of rising oil prices on inflation but also on the labor market," commented Bastien Drut, Head of Strategy and Economic Research, on the matter.




















