A session suspended from the geopolitical and monetary backdrop
The atmosphere remains constrained by two powerful exterior engines. On the one hand, the Federal Reserve yesterday maintained its rates between 3.50% and 3.75%, suggesting that its next decision could be an increase, while American inflation stood at 4.2% over one year in May. On the other hand, the G7 in Evian ratified a memorandum of understanding between Washington and Tehran, with the prospect of a reopening of the Strait of Hormuz and a return of Iranian crude to the market. Direct consequence: Brent fell back to around 77 dollars, after a fall of around 17% in four sessions. This double context sets the tone for a cautious session, where Paris does better than resist.
Internationally, the picture is mixed. The DAX symbolically increased by 0.04%, the STOXX 600 lost 0.44% and the FTSE 100 fell by 0.90%. At the close of the day before, Wall Street had clearly declined, with the Dow Jones down 0.98%, the S&P 500 down 1.21% and the Nasdaq down 1.34%. In Asia, the Nikkei 225 gained 1.65% at the close, while the Hang Seng lost 1.59%.
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The hierarchy of increases tells of a session dominated by the theme of defense and strategic industry. Airbus is at the top of the CAC 40, up 2.90% to 192.44 euros. The group is making a series of operational announcements, with the delivery of the first H135 to the Canadian FPNA program and the signing of a contract with OCCAR aimed at transforming the A400M into a command and reconnaissance platform. Kepler Cheuvreux also published this morning a purchase recommendation with a price target raised to 212 euros.
Safran follows in its wake, up 2.35% to 331.60 euros, after signing a protocol with Theon International for a joint venture in embedded optronics for drones, a rapidly growing segment of the defense market. The electrical equipment compartment is also taking over: Legrand is up 2.59% to 148.75 euros and Schneider Electric is up 2.33% to 289.35 euros. Luxury completes the top five, with Kering up 1.59% to 269.10 euros.
Carrefour stalls, energy penalized by the relaxation on crude oil
The contrast is striking on the decline side. Carrefour fell 6.27% to 15.41 euros, bottom of the index. JP Morgan published an “underweight” recommendation this morning with a price target set at 9 euros. The distributor communicated this week about the removal of 5,000 tonnes of plastic from its packaging as part of a cost control strategy.
Stellantis fell 2.46% to 5.64 euros, despite the announcement of a partnership with Wayve and Uber around level 4 autonomous robotaxis. The energy sector remains under pressure, consistent with the decline in oil prices: TotalEnergies lost 1.55% to 71.09 euros. Listed real estate is also affected, with Unibail-Rodamco-Westfield down 1.51% to 98.88 euros. ArcelorMittal dropped 1.49% to 56.96 euros, the steelmaker having launched, with thyssenkrupp Steel and voestalpine, a call for reform of the European emissions trading system.
