ArcelorMittal Soars Over 10%, CAC 40 Wavers Below 8,500 Points

A Parisian Session Hangs on Macro Backdrop

The atmosphere in Paris aligns with a global environment undergoing significant changes. In the United States, the June employment report, released the previous day, revealed only 57,000 job creations against the 110,000 expected, reigniting the notion of a slowdown in the American labor market and tempering expectations for further rate hikes. Meanwhile, oil continues its downward trend: Brent is around $70.7 per barrel, the lowest in four months, with the normalization of flows through the Strait of Hormuz and what have been called « positive progress » in indirect talks between Washington and Tehran.

This combination (cooling U.S. employment and the retreat of geopolitical risk premium in the Middle East, despite ongoing Russian strikes on Kiev) suggests a session without a clear directional impulse on European markets. The DAX is up 0.21%, the Stoxx 600 is nearly stable (+0.03%), and the FTSE 100 is down 0.40%. The CAC 40 aligns with this hesitant trajectory, as the mechanical decline in oil stocks offsets the performance of many sectors.

ArcelorMittal, Thales, and Utility Stocks Boost the Market

The highlight of the morning is the spectacular rise of ArcelorMittal, which soars by 10.15% to 57.32 euros, marking the strongest increase in the CAC 40. The Luxembourg-based steelmaker dominates the ranking of gains, far ahead of the other index stocks.

Behind it, Thales advances by 4.66% to 240.10 euros, as the defense sector continues to benefit from a tense geopolitical context, notably marked by massive Russian missile and drone attacks on Kyiv during the night of July 1 to 2. The utilities sector is also active: Engie rises by 3.84% to 27.57 euros after winning the development of over 400 km of new transmission lines in Peru as part of a 30-year concession, valued at 230 million dollars. Veolia Environnement climbs 3.81% to 37.10 euros following the release of the technical parameters of its nondilutive convertible bond worth 400 million euros maturing in 2032.

Euronext rounds out the top gainers with a 3.69% increase to 146.10 euros. BNP Paribas Exane has raised its price target from 125 to 128 euros on the stock, while maintaining its « Underperform » rating.

Stellantis and Legrand weigh on a narrow declining market segment

The decrease camp is particularly tightened, with only six stocks declining. Legrand takes the last spot in the CAC 40, falling by 1.21% to €143.25, despite RBC Capital raising its target price from €140 to €150, but maintaining its « Market Perform » rating.

Stellantis follows closely, down by 1.09% to €5.09. The automaker is experiencing a double whammy of unfavorable news: HSBC downgraded its recommendation from « Hold » to « Reduce, » with a price target decrease from €5.50 to €4.00. Additionally, the group remains penalized by a dynamic French automotive market in June (+8.4%), where it has progressed slower than the overall market, which mechanically weighs on its market share.

L'Oréal drops 0.91% to €376.90, Accor falls 0.55% to €50.18, and STMicroelectronics limits its decline to 0.19% at €62.25. Internationally, the Dow Jones closed the previous day up by 1.14% at 52,900 points, while the Nasdaq fell by 0.80%, illustrating a sector rotation that finds a muted echo in Paris by midday.