Thales Shares Lagging in CAC 40 Amid Geopolitical Easing
In mid-morning trading, the defense electronics group is trailing at the bottom of the CAC 40, even as the Paris index moves into positive territory. The stock continues a downward trend that began in early June, dipping below a closely watched technical threshold. The geopolitical relaxation in the Middle East continues to erode the premium given to defense stocks.
The Stock Dips Below Its Support at €219.40 Before Rebounding
Thales shares are down 2.57% at €219.50 in mid-morning trading, ranking as the worst performer in the CAC 40 while the index itself is up 0.33%. The stock briefly dipped below its support level at €219.40, reaching a low of €218.50, before rebounding to the threshold. This movement extends the decline that has been ongoing for several sessions, already noted during the 2.5% drop the previous day. Over the week, the stock has lost nearly 5%, bringing its quarterly performance to -8.66%. The price is now below its three moving averages: the MM20 at €231.73 (a gap of -5.28%), the MM50 at €234.86, and the MM200 at €244.94, indicating a lag of more than 10% to catch up. The RSI at 43 remains neutral, which does not rule out a continued movement towards the €218 zone.
Easing on Brent and the Decline in Geopolitical Premiums Weigh on Defense
The market context has turned unfavorable for the defense sector. Oil flows through the Strait of Hormuz have returned to their pre-conflict levels according to Washington, with Brent crude falling to around $72.5 per barrel, its lowest since the end of February. This geopolitical easing mechanically erodes the risk premium that had supported defense stocks in recent months. The movement comes as Thales had already absorbed its latest industrial announcements, including the French order of the multi-layer SAMP/T NG developed with MBDA in early June, and the presentation at Eurosatory of a military vehicle co-developed with Renault. The next technical threshold to watch remains the €218.50 zone, the session's low; in the event of a rebound, the MM20 at €231.73 acts as a nearby ceiling.
