CAC 40 Defies Wall Street with a 0.8% Rise, Boosted by STMicroelectronics and Luxury Stocks

Paris breaks free from American retreat

The leading index of the Paris market shows a very favorable spread by midday, with 34 stocks up and only 6 down. This is particularly noteworthy given that the American indices closed sharply in the red the day before: the Nasdaq fell by 1.98%, the S&P 500 by 1.62%, and the Dow Jones by 1.87%. Europe, however, is holding firm, with the DAX up 0.24%, the FTSE 100 rising 0.8%, and the STOXX 600 gaining 0.75%. The geopolitical context remains tense amid heightened tensions in the Strait of Hormuz and oil prices staying at high levels, but the Paris market prefers to welcome a series of favorable microeconomic catalysts this morning. The SBF 120 follows suit, rising 0.73% to 6,228.97 points.

Semiconductors and Luxury Leading the Way, ArcelorMittal Following Suit

Today's gain is led by STMicroelectronics, which jumps 3.65% to 63.57 euros. The Franco-Italian semiconductor company benefits from a significant upgrade by Deutsche Bank, which moves to a buy rating and raises its target price from 52 to 75 euros. This strategic review breathes new life into the cyclical technology sector. Following its lead, ArcelorMittal rises 2.30% to 56.98 euros, with the steelmaker taking advantage of the market's bullish tone on European industrial stocks.

Luxury also makes a comeback, with LVMH up 2.03% to 497.55 euros, despite a cautious note from Berenberg maintaining its « hold » recommendation while lowering its target from 560 to 420 euros. Engie follows closely (+1.78% to 27.42 euros), while Société Générale gains 1.77% to 69.98 euros. The bank announced the previous day a 100 million euro investment in Ardian's Averrhoa NBS fund, dedicated to nature-based solutions, as part of a financial and operational partnership with the asset manager.

Defensive Tech and Legrand Bucking the Trend

The digital services sector stands out as an exception in an otherwise predominantly bullish market. Capgemini posts the steepest drop on the CAC 40, with a decline of 3.05% to 96.56 euros, followed by Dassault Systèmes, which is down 2.56% to 18.84 euros. The sharp drop in the Nasdaq the previous day is mechanically weighing down this segment of the market, which is traditionally linked to American tech valuations.

Legrand falls by 1.61% to 134.20 euros, even as the electrical infrastructure specialist announced the acquisition of American company Girtz Industries, a specialist in modular power solutions for data centers. This marks the group's sixth acquisition since the beginning of the year.
Stellantis slips 0.57% to 5.75 euros. Recently, the automaker initiated a global recall of 1.3 million Jeep Wranglers and Gladiators due to a fire risk associated with the power steering pump.
Air Liquide limits its losses (-0.33% to 167.16 euros), despite announcing two new contracts with ArianeGroup for the industrialization of Ariane 6.