CAC 40 Wavers Around 8,436 Points: Defense Soars, Carrefour Falls Over 6%

A session hinged on the geopolitical and monetary backdrop

The atmosphere remains constrained by two powerful external forces. On one side, the Federal Reserve kept its interest rates between 3.50% and 3.75% yesterday, hinting that its next move could be a rate increase, as U.S. inflation stood at 4.2% year-over-year in May. On the other, the G7 meeting in Évian endorsed a memorandum of understanding between Washington and Tehran, with the prospect of reopening the Strait of Hormuz and the return of Iranian crude to the market. The direct consequence: Brent crude fell to around $77, after dropping about 17% over four sessions. This dual context sets the tone for a cautious session, where Paris shows resilience.

Internationally, the picture is mixed. The DAX symbolically rises by 0.04%, the STOXX 600 loses 0.44%, and the FTSE 100 declines by 0.90%. At the previous day's close, Wall Street had sharply fallen, with the Dow Jones down 0.98%, the S&P 500 decreasing by 1.21%, and the Nasdaq dropping 1.34%. In Asia, the Nikkei 225 gained 1.65% at the close, while the Hang Seng fell by 1.59%.

Defense, Equipment, and Luxury Drive Performance

The hierarchy of gains tells the story of a session dominated by the theme of defense and strategic industry. Airbus leads the CAC 40, climbing 2.90% to 192.44 euros. The group is stringing together operational announcements, with the delivery of the first H135 under the Canadian FPNA program and the signing of a contract with OCCAR to transform the A400M into a command and reconnaissance platform. Kepler Cheuvreux also published a buy recommendation this morning with a target price raised to 212 euros.

Safran follows closely, rising 2.35% to 331.60 euros, after signing an agreement with Theon International to form a joint venture for embedded optronics in drones, a rapidly growing segment of the defense market. The electrical equipment sector is also stepping up: Legrand increases by 2.59% to 148.75 euros and Schneider Electric moves up 2.33% to 289.35 euros. The luxury sector rounds out the top five, with Kering up by 1.59% to 269.10 euros.

Carrefour Drops, Energy Sector Hit by Easing Crude Prices

The contrast is striking on the downside. Carrefour falls 6.27% to 15.41 euros, at the bottom of the index. JP Morgan issued an « underweight » recommendation this morning with a target price set at 9 euros. The retailer had announced this week the removal of 5,000 tons of plastic from its packaging as part of a cost control strategy.

Stellantis drops 2.46% to 5.64 euros, despite announcing a partnership with Wayve and Uber for level 4 autonomous robotaxis. The energy sector remains under pressure, in line with the decline in oil prices: TotalEnergies slips 1.55% to 71.09 euros. The listed real estate sector is also affected, with Unibail-Rodamco-Westfield down 1.51% to 98.88 euros. ArcelorMittal loses 1.49% to 56.96 euros, as the steel giant, along with thyssenkrupp Steel and voestalpine, has called for a reform of the European emissions trading system.