CAC 40 Rises but Luxury Falters: Kering Drops Nearly 6%

A European session driven by industry amid oil tensions

Paris is advancing in step with other major European markets: the DAX jumps 1.52% to 25,001 points, the FTSE 100 gains 1.17%, and the STOXX 600 increases by 1.16%. Cyclical and industrial stocks are setting the pace in a context where the energy risk premium remains significant: Brent crude has risen above $72 a barrel following a new series of cross exchanges between Washington and Tehran, heightening concerns about traffic in the Strait of Hormuz. Also in the background is the Sintra Forum, where Christine Lagarde justified the ECB's latest rate hike, raising the main rate to 2.25%, while signaling the end of large-scale increases. The dispersion in Paris remains favorable to buyers, with 25 stocks up, 14 down, and one stable.

Wall Street had set the tone the day before, with the S&P 500 closing up 1.18% and the Nasdaq up 2.07%, providing a strong entry point for European markets at opening.

Industry, Semiconductors, and Defense at the Forefront

The leader in gains is dominated by industrial stocks. ArcelorMittal climbs 3.34% to 53.22 euros, followed by Schneider Electric, which advances 3.07% to 286.65 euros, after launching a 1.5-billion-euro bond issuance aimed at anticipating repayment deadlines over the next twelve months. Saint-Gobain rises 2.58% to 79.54 euros.

The technology sector also outperforms with STMicroelectronics, gaining 2.36% to 65.08 euros after Morgan Stanley raised its price target from 74 to 78 euros with an overweight rating. Finally, Safran advances 2.35% to 344.40 euros, supported by the announcement of exclusive discussions with the Gorgé family for the acquisition of Exail Technologies at 128.50 euros per share, an operation that would take the form of a block purchase followed by a mandatory public offer.

Luxury Under Pressure, Kering Takes a Hit

The luxury sector forms the red block of the Paris session. Kering drops 5.72% to 250.45 euros, marking the largest decline in the index, after Citi lowered its price target from 268 to 266 euros while remaining neutral, whereas HSBC raised it from 280 to 290 euros, maintaining a hold rating. LVMH falls 1.80% to 483.45 euros, and Hermès International slips 0.84% to 1,602 euros. Pernod Ricard, another stock sensitive to high-end consumption, loses 0.83% to 64.34 euros.

Outside of luxury, Capgemini retreats 2.61% to 88.18 euros, moving against a generally well-positioned European tech sector. This dual polarization (industry and defense rising, luxury declining) gives the Paris session a distinctly contrasted appearance, amid a European market that is otherwise solidly on the rise by midday.