Midday CAC 40: Defense and Semiconductors Hold Firm, but Index Declines

A session under pressure, driven by key industrial players

The Paris market is operating in a tense climate, following a decline in Asia—Hang Seng down 1.27% at closing, Nikkei 225 down 0.47%—and a generally downward trend in Europe. The geopolitical context remains complex, with developments in the Middle East continuing to fuel operator nervousness in the energy sector and cyclical stocks.

In this challenging landscape, the Paris stock exchange shows significant dispersion: nearly all sectors are experiencing profit-taking, with the notable exception of defense, aerospace, and semiconductors, which account for most of the day's gains.

STMicroelectronics, Thales, and Airbus Lead the Way

STMicroelectronics leads the pack with a jump of 3.09% to 59.74 euros. The French-Italian semiconductor manufacturer's stock benefits from simultaneous upward price target revisions: Jefferies raised its target from 52 to 74 euros while maintaining its buy rating, and Morgan Stanley also set its new target at 74 euros, up from 46 euros previously, maintaining its « overweight » recommendation. Meanwhile, the group announced the appointment of Armando Varricchio as chairman of its supervisory board, with Nicolas Dufourcq as vice-chairman.

The defense and aerospace sectors round out the podium of gains. Thales advances by 2.36% to 238.70 euros, followed by Airbus, up 1.17% to 175.74 euros. The aircraft manufacturer this Thursday formalized a partnership with Mistral AI to deploy European artificial intelligence models across all its operations, from aircraft design to embedded applications, including military ones. Its subsidiary, Airbus Helicopters, also announced the supply of 11 H145 helicopters to the Czech police. Safran also rose by 0.84% to 301.50 euros. L'Oréal completes the top five (+0.71%), with Berenberg raising its price target from 374 to 435 euros, with a buy rating.

Dassault Systèmes Drops, Luxury and Banking Under Pressure

On the downside, Dassault Systèmes posted the largest drop on the index with a decline of 4.25% to 18.93 euros. Société Générale fell by 1.98% to 69.39 euros after launching its 2026 employee shareholding plan at 54.75 euros per share. Eiffage dropped 1.79% to 123.70 euros, following the trend of construction and concession stocks.

Luxury is also among the main drags on the index: LVMH decreased by 1.76% to 475.45 euros, while Eurofins Scientific lost 1.70% to 61.40 euros. The session thus highlights a noticeable shift towards defense, aerospace, and semiconductor themes, at the expense of more cyclical and financial sectors, on a morning where risk appetite remains modest across all European markets.