CAC 40 Under Pressure: Luxury Falls, STMicroelectronics Goes Solo

A Paris Stock Exchange Left in the Red

The contrast is striking between the Paris stock exchange and other major markets. In Germany, the DAX limited its losses to -0.52% at 25,255.90 points, while London and the STOXX 600 showed positive territory. The U.S. indices, at the previous day's close, also displayed gains, with the Dow Jones up +0.58% and the S&P 500 up +0.37%.

The explanation lies largely in the very composition of the CAC 40, which is particularly exposed to the luxury sector, heavily hit this Tuesday. The SBF 120 also declined by 0.92%, confirming that the weakness extends beyond the main stocks.

The macroeconomic environment is also impacting the session's tone. Recent indicators point to increasing inflationary pressures in France, driven by the rising costs of energy commodities. This backdrop maintains a cautious climate regarding cyclical European assets.

STMicroelectronics Stands Out, AXA and Engie Hold Steady

At the top of the rankings, STMicroelectronics gains 1.6% to reach 58.95 euros, supported by a significant target price increase from Oddo BHF, which raises its target from 58 to 70 euros while maintaining its « outperform » rating. The Franco-Italian semiconductor company also announced that its CEO, Jean-Marc Chéry, will speak at the BNP Paribas Exane CEO conference on June 2 in Paris.

AXA follows with a gain of 0.54% to 40.69 euros, ahead of Engie (+0.48% to 27.41 euros), for which HSBC slightly raised its target price from 28.50 to 28.70 euros, while maintaining a neutral recommendation. Renault (+0.38%) and Crédit Agricole (+0.25%) complete a quintet of modest increases, indicating the scarcity of buyers this Tuesday.

Luxury Slumps, Schneider and Safran Follow Suit

The bottom of the chart is dominated by the luxury sector, an emblematic part of the Paris stock exchange. Hermès International shows the largest drop in the index with a decline of 3.18% to 1,598 euros. Kering follows with a decline of 1.66% to 243.20 euros, while LVMH loses 1.42% to 471.13 euros. This trio alone illustrates the pressure exerted on this segment, which is sensitive to global consumption prospects and supply cost tensions.

Schneider Electric loses 2% to 271.75 euros, following a poorly performing industrial sector. Safran, on the other hand, gives up 1.51% to 293.70 euros, after several sessions of favorable performance. Overall, the Paris trading session unfolds at a disrupted pace without any major national catalyst.