CAC 40 Slips as Safran and Airbus Weigh In, Energy Sector Holds Firm

A Downbeat Paris Trading Session in Line with Europe and Wall Street

The decline of the Paris stock market is part of a general cautious trend. The German DAX fell by 0.76%, the STOXX 600 dropped by 0.53%, and the FTSE 100 limited its losses to -0.24%. Across the Atlantic, Friday's session was particularly challenging with the S&P 500 down 2.64% and the Nasdaq plunging 4.18%. In Asia, the Nikkei 225 closed down 3.85% and the Hang Seng was down 1.22%.

The climate remains influenced by the surge in oil prices, with Brent crude rising above 97 dollars after new Israeli strikes in Lebanon over the weekend, and by the dollar nearing its two-month high following a US employment report that far exceeded expectations. This combination revives concerns about a persistently restrictive interest rate environment. In Paris, trading is calm but selling pressure has remained constant since the opening.

Orange Leads as Energy Boosted by Oil Prices

At the top of the rankings, Orange is up 1.43% at 17.69 euros. The historical operator benefits from the particular context linked to the memorandum of understanding signed with Bouygues Telecom and Free to acquire SFR, an operation valued at 20.35 billion euros.

Right behind, TotalEnergies gains 1.29% at 78.37 euros, driven by the Brent crude's rise above 95 dollars amid escalating tensions in the Middle East. STMicroelectronics earns 1.21% at 63.58 euros, a solitary rebound in a European technology sector digesting the drop in the Nasdaq during the last American session. Pernod Ricard (+1.10%) and Capgemini (+0.74%) round out this leading quintet in a market where increases remain rare.

Aerospace Under Pressure, Telecom and Industry in Decline

On the downside, the aerospace sector garners attention. Safran fell by 2.21% to 291.90 euros, weighed down by Citi lowering its target price from 342 to 305 euros, although the analyst maintained a neutral stance. Airbus closely followed with a 2.07% drop to 175.26 euros, as the aircraft manufacturer unveiled its U145, an unmanned version of its H145 helicopter dedicated to freight and military operations, at the ILA Berlin Air Show. The first flight is scheduled for late 2026.

Bouygues dipped by 1.77% to 49.27 euros, following the announcement of the memorandum of understanding for the acquisition of SFR and rumors of the M6 buyout by the TF1 group, in which the company is a shareholder. However, JP Morgan raised its target for the stock from 62 to 73 euros.
Legrand dropped by 1.39% to 142.00 euros, and Carrefour fell by 1.38% to 16.08 euros, in a retail sector sensitive to the inflationary context related to the energy shock.

By midday, the market's tone remains defensive, with a broad participation in the decline: 29 CAC 40 stocks were in the red, compared to 10 in the green, and one unchanged.