Paris Stock Exchange Rebounds After Two Sessions of Heavy Losses
Paris, March 4, 2026 – The Paris Stock Exchange saw a significant recovery on Wednesday, following two consecutive sessions of substantial declines. The upturn was attributed to a calming in the hydrocarbon market and renewed hopes for a short-lived conflict in the Middle East.
The benchmark CAC 40 index finished the day up 0.79%, adding 63.89 points to close at 8,167.73 points. This rebound comes after the index had plummeted by 3.46% on Tuesday, marking its worst daily performance since April 7, 2025, when it dropped 4.78% following former President Donald Trump’s announcement of massive tariffs on key U.S. trading partners. Over Monday and Tuesday, the CAC 40 had collectively lost more than 5.50%.
Market Reacts to Geopolitical Risks and Hopes for De-escalation
Christopher Dembik, Investment Strategy Advisor at Pictet AM, explained the market’s behavior: “Faced with geopolitical risk, the equity market incorporates the news with a significant decline, and subsequently, it experiences a technical rebound because investors believe that the conflict is unlikely to have lasting consequences.”
Further fueling optimism, Kathleen Brooks, an analyst at XTB, highlighted a New York Times article suggesting that “high hopes that the Middle East conflict could be short-lived” were bolstered by reports that Iran had contacted the United States over the weekend regarding an end to the war.
However, Fawad Razaqzada, an analyst at Forex.com, cautioned, “On paper, all this seems reassuring. Yet, in reality, the conflict continues, and no concrete signs of de-escalation are yet visible.”
Europe Benefits from Falling Natural Gas Prices
Europe, which is more exposed to gas supplies from the Middle East than the United States (a producer itself), also benefited from a sharp drop in European natural gas prices. The Dutch TTF futures contract, a key European benchmark, was down 8.80% to 49.51 euros per megawatt-hour around 6:00 PM Paris time.
Mr. Dembik noted the volatility in this market: “The trend reversal is extremely rapid in this market because there are few players and little liquidity, making it extremely volatile.”
Company Performances: Dassault Aviation Soars, Euroapi Struggles
Several individual companies saw significant movements on the stock exchange:
- Dassault Aviation Soars: Dassault Aviation reported a rise in net profit and sales in 2025, driven by the export success of its Rafale jet, despite an
