The Paris Stock Exchange maintains its momentum at midday, driven by cyclical stocks
The CAC 40 is up 0.44% by midday, affirming the constructive momentum of recent sessions. The Paris market continues to be buoyed by risk appetite, driven by expectations of interest rate cuts by the US Federal Reserve. However, this progress remains cautious as investors are keenly awaiting the release of the US PCE index, which could influence their rate outlook for the coming months. This tension between optimism and caution is clearly reflected in the day's mix of gains and losses.
Cyclical Stocks Maintain the Edge
At the top of the board, defensive and cyclical stocks are leading. Edenred is prominently ahead, with a rise of 2.34%, benefiting from a favorable trend in payment services and technologies. Stellantis continues its momentum with an increase of 2.14%, confirming regained confidence following UBS's upgrade recommendation the previous day, which now sets its price target from 8.30 to 12 euros. Saint-Gobain gains 2.11%, driven by a visible economic recovery in the construction and materials sector. STMicroelectronics advances by 1.95%, confirming strong interest in tech stocks linked to artificial intelligence and data. Capgemini rises by 1.3%, showing remarkable resilience after its significant 4.2% climb the previous day, suggesting enduring investor confidence in the IT consulting sector. These performances reflect a portfolio shift towards sectors considered direct beneficiaries of the interest rate cuts and the anticipated economic recovery.
Renault and Société Générale Take a Breather
The most interesting spectacle this midday lies paradoxically in the moderation of yesterday's two stars. Renault, which soared by 6.3% on Thursday following Bank of America's dramatic upgrade, now shows only a 0.19% increase, suggesting a massive profit-taking by investors who caught the wave. This buyer prudence was predictable after such a rise, with the stock trading at just 4.3 times its expected earnings—one of the most compressed multiples in the automotive sector. Even more surprising, Société Générale is down 0.38% despite being the big winner of 2025, with a 138% increase since January. This consolidation comes after Goldman Sachs raised its price target to 75.75 euros on Thursday. The market seems to be assessing that the bulk of the recovery has taken place, even though the fundamentals continue to improve for the banking institution. These two relative declines reveal the market's internal logic: gradually rewarding top performers rather than buying them en masse once consensus is established.
Defensive and Rate-Sensitive Sectors Struggled
Orange falls by 1.75%, marking the steepest decline of the day within the Paris index. The French telecommunications giant is struggling due to ongoing macroeconomic uncertainties and the usual challenges facing the telecom sector, characterized by low growth and intense competition. TotalEnergies decreases by 0.89%, reflecting the persistent difficulties in the energy sector and ongoing concerns about oil demand in the event of an economic slowdown. LVMH slides by 0.85%, indicating a level of caution among investors regarding luxury stocks, which are seen as vulnerable to consumption slowdowns. Unibail-Rodamco-Westfield dips by 0.62%, affected by weaknesses in the commercial real estate sector. These declines, albeit moderate, illustrate a current shift in the market: investors are gradually moving away from traditional defensive stocks and cyclical sectors sensitive to economic cycles, favoring equities considered better positioned to benefit from lower interest rates and a potential economic revitalization.
This content has been automatically translated using artificial intelligence. While we strive for accuracy, some nuances may differ from the original French version.
