(CercleFinance.com) – After oscillating around its equilibrium point throughout the day, the Paris stock market finally closed the session with a moderate gain of 0.26%, at 7050 points, notably supported by Publicis ( +3%), Engie (+2.8%) or even Veolia (+1.6%).
Reactions are limited after the publication of the US ‘composite PMI’ published by S&P-Global: the index of purchasing managers for the manufacturing and services sectors rose to 46.6 (vs. 45 in December), i.e. a record high for 3 months.
In detail, the PMI for ‘services’ (tertiary) fell from 44.7 to 46.6 between December and January (thwarting a consensus of 45). The PMI for the manufacturing sector (industry) rose from 46.2 to 46.8 (against 46 expected, it is a two-month high).
Earlier, investors took notice of encouraging numbers from the S&P Global Composite PMI of Eurozone activity (flash estimate).
This recovered for a third consecutive month in January, to 50.2 against 49.3 in December, thus returning above the bar of 50 for no change.
The index therefore signals modest growth in the euro zone’s private sector, the first since June 2022, thanks to the services sector whose index rose to 50.7, while manufacturing production (index up to 49) only decreased slightly.
For France, the indicator is a little more mixed. The composite flash PMI index of overall activity in France fell from 49.1 in December 2022 to 49 in January, thus signaling a third consecutive monthly decline in the activity of French private sector companies.
The performance of manufacturers continued to weigh heavily on that of the wider economy, with a further decline in manufacturing output, while the services sector posted the largest drop in activity since March 2021.
“The fragility of demand continues to weigh on French economic performance, with the overall volume of new business falling again in January,” notes Joe Hayes, senior economist at S&P Global Market Intelligence.
The picture is quite different across the Channel where the S&P Global/CIPS private sector activity index in Great Britain fell in January to 47.8 in January after 49.0 in December, i.e. the lowest forecast in the Reuters consensus among economists.
This decline is attributed to the rise in interest rates, repeated strikes and weak demand.
On the front of the quarterly results of companies in the United States, note that Halliburton largely exceeded expectations, as did J&J, while 3M and Lockheed Martin were disappointing.
On the bond front, a slight improvement is materializing on our OATs (-4pts at 2.615%), on Bunds (-2.5pt at 2.176%) and on Italian BTPs (-7pts at 3.946%).
Across the Atlantic, despite the rise in the ‘PMI Composite’, US T-Bonds eased by -3.5 Pts to 3.484% and amplified their lead since 2:30 p.m.
In return for this, the Euro-Dollar parity is stable at $1.0870 for one euro (range for the day: 1.0850/1.0900).
In the news of French companies, Eurobio Scientific announced last night that it recorded a turnover of 152.5 million euros during the 2022 financial year, a performance down 17% compared to 2021.
The Israeli CytoReason announced yesterday evening the signing of a license agreement with Sanofi relating to the use of its artificial intelligence tools in order to discover new drugs.
Technip Energies announces that it has won, as part of its long-term agreement with Aramco, a contract for the modernization of sulfur recovery infrastructure at Aramco’s refinery in Riyadh.
In an update on its activity, Carmat announces that it estimates that it can reach a production capacity of 500 prostheses in 2024 and 1,000 prostheses by 2027, as well as its break-even point within five years, in 2027.
Air France announces that it is offering a new channel for discussion with its customers on the WhatsApp instant messaging application, available seven days a week in 22 countries and in four languages (French, English, Italian, Portuguese/Brazilian).
Finally, Interparfums fell by 0.8% despite the announcement of record sales of 706.6 million euros for the past year, up 26% (+20% at constant currencies) , including nearly 200 million in the last quarter, up more than 60%.
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