CAC40: Legrand Soars Nearly 6% While Orange Plummets

Session Hinges on Fed's Words and Evian G7

The pace of trading remains measured this Wednesday. The CAC 40 is inching up slightly, following the STOXX 600, which is up by 0.35%, while the DAX slips by 0.07% and the FTSE 100 falls by 0.13%. This reflects a fragmented European market, as illustrated by today's activity in Paris: 19 stocks up, 20 down, and one stable.

The backdrop is doubly charged. On one hand, the Federal Reserve's Monetary Policy Committee concludes its meeting tonight, the first chaired by Kevin Warsh, in a setting where most traders are expecting no change in interest rates. The new « dot plot » and the tone of the press conference are awaited as the true highlights of the session. On the other hand, the G7 meeting in Évian-les-Bains is examining a U.S. memorandum aimed at ending the war with Iran, with the prospect of a gradual reopening of the Strait of Hormuz. This potential easing weighs on the geopolitical risk premium associated with oil, yet it does not spark significant movement in Parisian equities.

Legrand and Schneider Electric Lead the Market, Thales Boosted by Eurosatory

At the top of the rankings, Legrand surges 5.91% to €146.90, marking by far the largest gain in the index. The electrical equipment sector is buzzing: Schneider Electric follows with a rise of 2.94% to €285.10. These two giants of electrification are dominating the Paris stock market leaderboard.

Defense is also well-positioned. Thales increases by 1.18% to €230.80, as the company unveiled the 4 Troop, a multi-role military vehicle featuring secure communication, drones, and artificial intelligence, alongside Renault at Eurosatory on Monday. Saint-Gobain climbs 1.17% to €79.42, following the announcement of the sale of its Dahl operations in the Nordic countries to Finland's Kesko for an enterprise value of €1.518 billion. Société Générale rounds out the top five with a 1% increase to €77.95.

Orange Struggles, EssilorLuxottica and Stellantis Under Pressure

Struggling, Orange fell by 4.23% to 16.77 euros, marking the lowest position within the index. The operator is experiencing a dual setback: Barclays has resumed its coverage with a « market weight » rating and set a target of 17 euros, and the group announced the launch of a new hybrid bond accompanied by a buyback offer for certain existing issuances.

EssilorLuxottica dropped 2.94% to 178.15 euros, despite Tuesday's announcement of an agreement with Applied Materials to develop optical systems for smart glasses and augmented reality. The cyclical sector is also suffering: Stellantis fell 2.09% to 5.85 euros and ArcelorMittal declined 1.99% to 58.04 euros, amid reports that Chinese figures released this week confirm a decline in consumption and investment, the first negative signal on global demand for metals and cyclical goods since the end of 2022. Carrefour rounds out the unfavorable ranking, down 1.53% to 16.36 euros.