ArcelorMittal Soars Over 6%, CAC 40 Holds Steady Despite Defense Sector Pressure

A Parisian Session Shaped by Geopolitical and Monetary Forces

The main index of the Paris market is trading almost flat, following a stable DAX (-0.01%) and a barely positive STOXX 600 (+0.12%). This dispersion clearly illustrates the prevailing hesitation: 22 stocks are rising, 16 are falling, and 2 remain stable in the CAC 40. The broader SBF 120 is up 0.09% at 6,303.74 points.

Two forces are driving the session. On one hand, the resumption of strikes between Washington and Tehran keeps a noticeable risk premium on energy markets and weighs on stocks with a strong defense component. On the other hand, the minutes from the FOMC meeting on June 16-17, released on July 8, revealed a divided committee on the need for further tightening, as U.S. inflation remains above target. As a result, European investors are holding back.

Across the Atlantic, the benchmark remains strong: the S&P 500 closed the previous day up 0.81% and the Nasdaq gained 1.3%, driven by technology stocks and the theme of artificial intelligence, explicitly mentioned by the Fed as a factor putting upward pressure on prices.

ArcelorMittal in the Spotlight, Followed by Michelin and Stellantis

Today's top performer is undeniably ArcelorMittal, which soared 6.49% to 58.06 euros. The Luxembourg-based steel giant benefited from a double spotlight from analyst firms: Goldman Sachs raised its price target from 44 to 46 euros, while JP Morgan set theirs at 57 euros, with a neutral stance. This significant move contrasts with the relative sluggishness of the index.

Michelin follows with a gain of 1.69% to 34.83 euros. The Clermont-based manufacturer is buoyed by two distinct developments: its subsidiary, Michelin ResiCare, has entered exclusive discussions with Axens to industrialize bio-sourced 5-HMF, with an initial unit of 3,000 tons per year planned for early 2027 in Péage-de-Roussillon. Meanwhile, the Michelin Guide unveiled its first wine selection dedicated to Burgundy, distinguishing 94 estates.

Stellantis climbs 1.53% to 4.74 euros, despite a notable downgrade by JP Morgan, which lowered its recommendation from “overweight” to “neutral” and nearly halved its price target from 10 to 6 euros. Saint-Gobain (+1.43%) and Eurofins Scientific (+1.37%) round out the top five, with no specific catalyst identified.

Thales Loses Ground as Defense and Public Services Come Under Pressure

Conversely, Thales drops 1.94% to 222.40 euros, marking the biggest decline in the index. The defense electronics group is affected by an UBS review, which maintains its buy recommendation but significantly lowers its price target from 390 to 330 euros. This adjustment comes as the NATO summit in Ankara, which concluded on Wednesday, confirmed continued aid to Ukraine but raised questions about the sustainability of the American commitment and the scale of the forthcoming European budgetary effort.

Following are Legrand (-0.88%), Veolia Environnement (-0.77%), and Safran (-0.68%), another stock exposed to the defense-aerospace theme. Engie rounds out the declining quintet with a drop of 0.55%, as European gas prices remain strained, with the TTF contract having risen by about 5% in a recent session, indicating the persistent sensitivity of the European energy market to developments in the Middle East.