** Exane BNP Paribas says global stainless steel prices "stretched" but expects European steel to regain control of market and push for higher prices, U.S. to reach peak pricing soon

** "Momentum has clearly stalled while demand looks vulnerable," broker says

** Cuts Acerinox ACX.MC and Aperam APAM.AS to "underperform" from "neutral"

** Upgrades Commercial Metals Co CMC.N to "outperform" from "neutral"

** "The pause in EU HRC rally caught us by surprise, exposing unforeseen CBAM loopholes and putting Q2/Q3 earnings at risk," broker says, citing underestimated upside from expected higher EU and US steel prices

** ArcelorMittal MT.AS best positioned to gain from this trend, it adds

** Shares in Acerinox and Aperam fall about 4% at 0840 GMT