The CAC 40 shed 0.46% to 8,104.09 points, marking its third consecutive session of decline and bringing its three-day loss to 1.50%. The same trend was observed across much of Europe. Frankfurt's DAX 40 lost 0.18% and the Euro Stoxx 50 slipped 0.25%. London's FTSE 100 was the exception, managing to scratch out a 0.11% gain.

The calm before the storm

Investors had little to monitor on the macroeconomic front, with the exception of the Conference Board's consumer confidence index, which delivered a positive surprise. It came in at 92.8 points for April, compared to 91.8 in March, while analysts had expected a drop to 89.2 points. At 92.8, it stands at its highest level since October 2025.

The remainder of the week will be significantly busier, starting tomorrow with preliminary April inflation figures in Germany, U.S. durable goods orders for March, and several real estate indicators from across the Atlantic.

The highlight of Wednesday's session will be the U.S. Federal Reserve's monetary policy decision, although it is unlikely to move rates. The press conference by Chairman Jerome Powell, his last as head of the Fed, will as always be particularly scrutinized.

On Thursday, it will be the European Central Bank's turn to unveil its monetary policy, and there too, no change is expected.
According to Alessia Berardi, Head of Macro Strategy at the Amundi Investment Institute: 'we expect the Fed to keep its key rates unchanged this week. Although Kevin Warsh did not send a dovish signal during his hearing, his speech appeared balanced in the face of various possible outcomes'. Regarding the eurozone, she added: 'we do not foresee any change in key rates at this week's meeting and continue to advocate for greater patience from the ECB, although the market seems to be pricing in a probable hike in June'.

A handful of corporate earnings

Investors also had a few quarterly corporate reports to monitor, though the bulk of these publications in Europe is expected between tonight and Thursday morning.

Air Liquide posted the sharpest decline on the CAC 40 index (-3.20%) after narrowly missing consensus. Over the first three months of the year, revenue amounted to 6.786 billion euros, whereas Jefferies had expected 7.051 billion, Oddo BHF 6.88 billion, and the consensus stood at 6.826 billion euros. Air Liquide announced that its reported sales fell by 3.5%, but rose by 3.4% excluding currency and energy effects, and by 1.9% on a comparable basis.

Conversely, also in Paris, Nexans surged by 8.19%. The group, which designs and deploys advanced cabling solutions, accessories, and services, saw its revenue grow by 1.3% at standard metal prices to reach 1.497 billion euros. Investors particularly welcomed the announcement of the acquisition of Republic Wire in the United States.

Elsewhere in Europe, Bayer retreated by 4.52%. Investors avoided taking positions following the start of the hearing before the U.S. Supreme Court regarding Roundup litigation.

The rest of the week in Europe will be marked by earnings from AstraZeneca, TotalEnergies, Mercedes-Benz, Michelin, adidas, Schneider Electric, Crédit Agricole, Société Générale...

Little movement in the Middle East

Regarding the war in the Middle East, after two months of conflict and in the absence of real progress in the negotiation process, investors seem to have relegated it to the background. They are primarily hoping for a reopening of the Strait of Hormuz to ease tensions on energy prices and other commodities (such as fertilizers) and to limit inflationary pressures.

Crude oil prices remain at elevated levels. WTI crude in New York is trading at 99.51 dollars, while North Sea Brent is priced at 103.88 dollars.

On the currency market, the euro is retreating slightly against the greenback (-0.13%) and is trading at 1.1708 dollars.