Stock Market: Aerospace Takes Off by Nearly 8% Amid Geopolitical Relief

Safran and Air France-KLM Lead the Charge, Rebound is Widespread

Ten out of the eleven stocks in the sector are trading in the green, with none in decline. Air France-KLM is leading the charge with a jump of 13.51%, the airline benefiting directly from the easing in jet fuel prices—as Brent crude has dropped to $93, compared to significantly higher peaks in recent weeks. SAFRAN, a heavyweight in the sector with a market cap of over €131 billion, is up 11.24% and is mechanically lifting the entire sector index. Figeac Aéro (+7.88%), AIRBUS (+7.85%), and LISI (+7.04%) round out a uniformly positive picture.

The extent of the movement exceeds that of the broader industry (+6.94%) and defense (+7.20%), sectors that are also seeing significant increases. The CAC 40 is up 4.71%, and the SBF 120 is up 4.61%, which confirms a marked outperformance by aerospace, the segment most sensitive to the combination of reduced energy costs and increased visibility on international air routes.

A strong rebound, but still technical at this stage

For the investor, the question is whether this spectacular rebound can be sustained over time. Several technical signals suggest caution. The sector-specific RSI, weighted by market capitalizations, is at 43 — a neutral zone that reflects the extent of the prior correction rather than excessive optimism. The weighted average price of the sector has risen above its 50-day moving average and remains above the 200-day moving average, indicating a medium- and long-term uptrend.

Moreover, the sector's MACD has just crossed above its signal line, confirming an emerging positive dynamic. However, several emblematic stocks — Airbus, Air France-KLM — are still below their 50- and 200-day averages, indicating that today's session is more of a strong technical rebound than a completed trend reversal. The future will largely depend on the effective confirmation of the reopening of the Strait of Hormuz and the progress of the talks announced in Pakistan starting Friday. As it stands, the sector is gaining some breathing room, but pre-crisis levels have not yet been regained.