ArcelorMittal SA Shares Drop 2.5% and Break Below 50-Day Moving Average
The Luxembourg-based steelmaker is among the biggest losers in the CAC 40 this Wednesday, in an otherwise slightly bullish Parisian index. The stock continues a consolidation that began last week, after several months of spectacular gains. The session unfolds as the macroeconomic climate tightens, with a marked rebound in the VIX.
Stock Falls Below its 50-Day MA, Erasing Part of Recent Rally
ArcelorMittal shares are down 2.26% to €54.58 in early afternoon trading, from €55.84 the day before. The drop places the steelmaker among the CAC 40's biggest losers, while the index itself is up 0.29% during the session. The decline is part of a broader consolidation movement: the stock has lost 7.84% over the week, bringing its monthly performance to -3.88%. However, the annual performance remains significantly positive, at over 108%.
The price breaks its 50-day moving average (€54.87), a threshold it had previously defended, and moves noticeably away from its 20-day MA at €58.42 (a gap of -6.57%). The RSI at 46 remains in neutral territory, currently signaling neither overselling nor an imminent technical rebound. The next lower benchmark is at €51.26, a support identified by indicators, while the 200-day MA at €44.03 remains well below (a cushion of nearly 24%), reflecting the strength of the underlying trend despite the current pause.
Rate Tensions and AWS Agreement in the Background
The session takes place in a more tense market environment: the VIX rebounds by 9.14% to 18.86, reflecting increased nervousness following restrictive signals from major central banks. The ECB has raised its rates for the first time since 2023, while the Bank of Japan has set its key interest rate at its highest level since 1995, in a context where inflationary pressures remain strong. In the United States, nine members of the FOMC now anticipate an additional rate hike by the end of 2026. These signals weigh on European cyclical stocks, including the steel industry.
On the corporate front, ArcelorMittal announced on Monday a strategic collaboration with Amazon Web Services to deploy AI and cloud technology across its sites in fourteen countries. The agreement also includes a multi-year framework for supplying low-carbon XCarb steel for Amazon's facilities and data centers. Although the news has now been absorbed by the market, it has not been enough to offset the consolidation movement. The support at €51.26 will be the next technical level to watch if the pause continues.
