The CAC40 faces significant stress from geopolitical tensions in the Middle East, driving oil prices up nearly 18% in a week and natural gas prices in Europe up around 20% over three weeks. Political uncertainty in France, reflected in the OAT-Bund spread remaining around 80 basis points, adds to market vigilance. Additionally, the US 10-year yield has surged above 4%, with concerns about inflation overshadowing labor market stability, while volatility in the SP500 has increased ahead of the upcoming corporate earnings season and the US election.
