ArcelorMittal Shares Surge 3% Midday After Morgan Stanley Upgrade
As of midday on January 7th, ArcelorMittal's stock price stood at 40.83 euros, marking a 3% increase from the previous day's close of 39.64 euros. This rise is part of a positive overall trend for the steelmaker, which has seen a 4.64% increase over seven days and a 22.06% increase over three months. The annual performance has reached 89.73%, indicating a spectacular turnaround after several challenging years. Trading volume remains modest with 0.15% of capital exchanged. Morgan Stanley has upgraded its recommendation for the stock from 'equal-weight' to 'overweight' and raised its price target from 33.70 euros to 46.20 euros. This upgrade is based on the belief that the European steel market is undergoing structural changes favorable to local producers, who are expected to benefit from the European steel sector defense mechanisms proposed by the European Commission, allowing the group to potentially increase its factory utilization rates in Europe from around 65% and boost its steel exports by approximately 10% in the short term.
The stock is now trading above its resistance threshold of 39.86 euros, a significant technical level breached during the session. The 50-day moving average at 36.24 euros indicates a now distant support base, while the RSI at 59 signals a favorable zone without excessive optimism, still leaving room for upward movement before entering an overbought zone. The stock is trading at the upper Bollinger band at 40.13 euros, confirming the strength of the current momentum and suggesting a phase of technical extension. The bullish dynamic is part of a solid setup with a positive alignment of moving averages. The 20-day moving average at 38.49 euros supports the short-term trend, while the 200-day moving average at 30.12 euros marks a clear departure from the annual lows. The MACD shows a positive convergence with a line at 0.84 and a signal at 0.83, confirming the ongoing bullish momentum. The Chaikin Money Flow at 0.07 indicates moderate but present buying flows.
ArcelorMittal and EDF signed a Nuclear Production Allocation Contract on December 26, 2025, for ArcelorMittal's sites in France, following a letter of intent signed in January 2024, marking a major step in ArcelorMittal's energy strategy in France. Under this agreement, EDF will allocate a portion of the power from its operational nuclear fleet to ArcelorMittal for a period of 18 years, securing its long-term needs for competitive, low-carbon electricity, with the first deliveries starting on January 1, 2026. The annual results for 2025 are expected to be published on February 6, 2026, at which time the market will scrutinize the confirmation of strategic investments and the group's outlook in a rebalancing European environment.
