CAC 40 Holds Above 8,160 Points, With Defense and Luxury as Support

Paris stock market remains aggressive despite central bank pressure

Paris is showing a strong performance following the European Central Bank's decision to raise its main interest rate by 25 basis points to 2.50% on September 10. This marks the second increase of the year, aimed at containing inflation still fueled by soaring energy prices. Christine Lagarde emphasized the « data-dependent » nature of the future trajectory and an environment considered « extremely uncertain. »

The energy context remains at the forefront: the Brent barrel surged by about 5% the previous day to exceed $106, only to drop back to around $104 this morning, amid repeated attacks on oil tankers and ongoing tensions surrounding the Strait of Hormuz. This backdrop weighs on inflation expectations but does not dampen European investors' appetite this Friday morning.

The movement in Paris is in line with a consistent European trend: the SBF 120 is up by 0.59% during the session, while across the Atlantic, the previous day, the S&P 500 had dropped by 0.58% and the Nasdaq 100 had fallen by 1.08% at the close of Thursday evening in Wall Street.

Defense, Aerospace, and Luxury: The Trio Driving the Index

Leading the CAC 40, Safran rises 1.96% to 328.30 euros. The engine manufacturer is benefiting from a busy news cycle: its Electronics & Defense subsidiary and MBDA have been selected by the French Defense Procurement Agency for the Thundart missile project, which aims to succeed the Unit Rocket Launcher in the French Army. Following this, JP Morgan raised its price target from 430 to 460 euros, reiterating its « overweight » rating.

The aerospace sector is also buoyed by Airbus, up 1.41% to 198.54 euros. The company has secured several major space announcements: Eutelsat ordered an additional 229 OneWeb satellites, bringing the total to 669, while Airbus and Thales will construct the first satellites of the European IRIS² constellation, expected to be delivered in 2029.

The luxury sector is also making its contribution. Kering gains 1.58% to 237.85 euros, with CIC Market Solutions maintaining its buy recommendation while lowering its target from 340 to 320 euros. LVMH follows, up 1.07% to 410.85 euros. Finally, STMicroelectronics rounds out the leaders with an increase of 1.89% to 44.47 euros.

A Niche in Significant Decline

Losses remain limited and small in scale. Dassault Systèmes concludes the list with a decrease of 0.79% to 20.22 euros, ahead of Engie, which drops 0.66% to 24.14 euros.

In the energy sector, TotalEnergies loses 0.29% to 78.15 euros, despite announcing a new oil discovery in Angola and acquiring new licenses in the Lower Congo Basin, alongside the Angola Oil & Gas Conference. Bureau Veritas (-0.22%) and Euronext (-0.12%) close the list of rare stocks in the red, during a morning clearly dominated by buyers.