Airbus Stock Jumps 3%, Boosted by Easing Oil Prices
The European aerospace manufacturer has made a significant rebound in early afternoon trading, within a Parisian market that is sharply on the rise. The easing of oil prices and hopes for a ceasefire in the Middle East are giving a boost to cyclical stocks, after several sessions of consolidation. The stock is now approaching closely watched technical benchmarks.
Airbus Benefits from a More Favorable Market Environment for European Cyclical Stocks
Airbus stock has risen by 3.07% to €180.64, within a CAC 40 that is up by 1.84%. The stock is benefiting from a drop in Brent crude to below $89, following Donald Trump's statements about cancelling planned strikes on Iran and the possibility of a peace agreement as early as this weekend. This energy context relieves pressure on the aerospace manufacturers' client companies, contrasting with the session on June 10 where the stock had fallen by 1.5%, weighed down by oil prices close to $93.
The rebound is part of a broader risk-on movement, which has also lifted Stellantis, Kering, and ArcelorMittal to the top of the Paris index. The ILA Berlin Air Show sequence further fuels a stream of commercial announcements for the group, including a partnership sealed this Friday between Airbus Defence and Space and the Ukrainian company SkyFall on air defense, following a letter of intent signed the day before with Alta Ares in anti-drone warfare.
The Stock Recovers Its Short-Term Moving Averages but Still Faces Resistance at the MM200 at €189.50
The rebound brings the price well above the MM20 (€173.35) and MM50 (€172.66), with a gap of around 4.2 to 4.6%, indicating that short-term momentum is recovering. However, the MM200 at €189.50 remains 4.68% above the current price and continues to mark the upper limit of the medium-term movement, very close to the identified resistance at €188.50. The RSI at 52 indicates a balanced configuration, without excess, which gives the stock some room before approaching these thresholds.
CIC Market Solutions reiterated on June 10 their buy rating with a target maintained at €225, representing a potential upside of about 25% from the current price. The next sector event to watch is the Eurosatory trade fair, opening on June 17.
