Around 10:30 AM, the CAC 40 is up 0.34% at 8,328 points, largely supported by luxury heavyweights, with Kering, Hermès, and LVMH gaining 2.9%, 2.7%, and 2.3% respectively. Across the Rhine, Frankfurt is settling for a more modest gain (0.14%), while London remains far more cautious, shedding 0.5%.

'Freedom Project': Stillborn on arrival?

It did not last long. Championed by the United States, 'Project Freedom' aimed to provide military escorts for vessels through the Strait of Hormuz. However, NBC News reported this morning that Saudi Arabia and Kuwait have suspended U.S. armed forces' access to their bases and airspace, while also limiting overflight rights. The reason? Riyadh and Kuwait City were not even consulted by Washington. This oversight forced Donald Trump to backtrack and announce the project's suspension, citing the imminent signing of an agreement with Iran.

In reality, 'this propaganda is primarily intended to justify Trump's retreat,' analyzed a source interviewed by Tasnim News, an Iranian agency considered close to the regime.

Regardless, the naval blockade implemented by the United States remains firmly in place. 'To date, 52 commercial vessels have been ordered to turn back or return to port to comply,' according to the U.S. Navy's command center. According to maritime traffic tracking sites, passages remain a trickle: only 8 vessels have crossed the strait in the last 24 hours.

Following the exchanges of fire reported in recent days, the current relative lull is being widely welcomed by markets, as evidenced by the drop in oil prices, with Brent down 2.1% (99.6 USD per barrel) and WTI down 2.5% (93.5 USD).

Stocks on the move

Infineon is posting the best performance on the Euro Stoxx 50, with a gain of nearly 4.21%. As a reminder, the German semiconductor manufacturer published rising quarterly results yesterday and raised its 2026 targets. BMW (+2.67%) and adidas (+1.75%) are also among the most prominent German stocks this morning.

In France, Legrand (+3.28%) unveiled this morning a group share net income of 334.9 MEUR for the first three months of 2026, up 14.2% year-on-year, with an adjusted operating margin (after acquisitions) stable at 20.7% of sales.

Engie (-2.07%) generated revenue of 20.6 BnEUR, down 11.6% on a reported basis and 9.5% organically. EBITDA stood at 4.7 BnEUR, down 13.6% reported and 12.3% organically.

Bouygues (-1.66%) reported a group share net loss (including the exceptional contribution on the profits of large companies in France) of 94 MEUR for the first quarter of 2026, compared to a loss of 156 MEUR a year earlier.

Elsewhere in Europe, Shell's (-1.67%) adjusted earnings for the first quarter of 2026 amounted to 6.9 BnUSD, up 23.21% year-on-year, reflecting solid performance across its operations.

Finally, Rheinmetall is shedding 2.87% following the publication of quarterly revenue down 14.6% to 1.94 BnEUR. Operating profit, however, rose 17.3% to 224 MEUR, representing a margin of 11.6%, up 95 basis points year-on-year.

A flurry of statistics

On the statistical front, real new orders in the German manufacturing sector increased by 5% between February and March 2026, according to Destatis.

Furthermore, France's trade deficit widened in March to 6.86 BnEUR, compared to 5.51 BnEUR the previous month, according to seasonally and working-day adjusted (SA-WDA) data.

In the early afternoon, market participants will digest the latest U.S. jobless claims. They are expected to come in around 205,000.

In the meantime, the euro is edging up 0.2% against the greenback, trading around 1.177 USD.