CAC 40 Stays Strong Despite Plunge in Automotive Stocks

A Mixed Trading Session Amid Energy Tensions

The atmosphere remains constructive on Euronext, with 27 stocks rising compared to 13 declining within the benchmark index. Meanwhile, the SBF 120 is up 0.43% at 6,160.03 points during the session. In Europe, the trend is also positive: the STOXX 600 is up 0.5% at 637.33 points, and the FTSE 100 is up 0.61%, while the DAX is advancing more modestly by 0.26%.

The backdrop is still dominated by tensions in the Middle East. The closure of the East-West Saudi pipeline following a drone attack has kept strong pressure on energy prices, with Brent surpassing $107 per barrel. This geopolitical risk premium, combined with ongoing attacks in the Red Sea and reduced navigation through the Strait of Hormuz, maintains an atmosphere of uncertainty in the markets, yet it hasn't derailed the Paris session. Wall Street had ended lower the previous day: the S&P 500 lost 0.45% and the Nasdaq 100 0.65% at Tuesday's close.

Semiconductors, Construction, and Steel Boost Market

Leading the gains, STMicroelectronics is up 2.5% to 42.83 euros. The semiconductor manufacturer announced the launch of the VD56GA, an infrared sensor for automobile interiors, highlighting a focus on high-volume platforms.

Bouygues is up 1.9% to 44.60 euros, supported by JP Morgan, which raised its price target from 73 to 75 euros while maintaining its « overweight » rating. The construction sector also stands out with Eiffage, rising 1.61% to 107.40 euros.

ArcelorMittal also gains 1.61% to 64.26 euros, amid a somber backdrop: the group reported two deaths in a new strike on its Ukrainian site in Kryvyi Rih. Legrand rounds out the top performers with an increase of 1.54% to 135 euros.

The Automobile Industry Faces Heavy Penalties

At the other end, the automotive sector is under the most pressure. Renault drops 4.36% to 28.31 euros, even though Moody's has upgraded its credit rating to « Baa3, » placing it in the « investment grade » category with a stable outlook.

Stellantis, on its part, declines by 2.43% to 4.38 euros. The automaker suffers from a downgrade by Berenberg, which went from « buy » to « hold, » with a price target reduced from 7.80 to 5.10 euros. Meanwhile, its Pro One utility division unveiled at the Hannover show its new connected ecosystem and a redesigned logo, part of its FaSTLane 2030 roadmap.

Technology rounds out the declines: Capgemini falls 2.21% to 106.30 euros, and Dassault Systèmes drops 1.71% to 20.65 euros. Carrefour finally gives up 0.92% to 16.62 euros, in a consumer segment exposed to inflationary pressures driven by surging energy prices.