(CercleFinance.com) – The Paris Stock Exchange ended the session with a decline of 0.72% to 7,411 points, penalized by L’Oréal (-4.7%), EssilorLuxottica (-4%) and Teleperformance (-2). .6%).
Volumes are particularly limited with barely 2 billion euros traded since the opening while Wall Street was closed today, due to ‘Martin Luther King’s Day’.
In the bond compartment, 10-year OATs (2.733%) and Bunds (2.194%) deteriorated by around 5 points, while the ECB seems very reluctant to let the markets expect a rate cut before next fall. .
But the US markets are currently counting on a 70% chance of a first easing in March, followed by two other reductions in the interest rate in May and then in June, expectations considered too aggressive by some analysts.
Only the next meeting of the Federal Reserve, scheduled for the end of the month, will provide some visibility on the future development of monetary policy.
In the meantime, investors will closely monitor company quarterly releases. Indeed, the results season has just started across the Atlantic: Morgan Stanley and Goldman Sachs will publish their accounts on Tuesday, followed the next day by Alcoa then by SLB on Friday.
The fourth quarter publications arouse particular anticipation due to the high valuation of the S&P 500, which trades at 19.5 times expected earnings, compared to a ten-year average of 17.6 (and the ‘fantastic 7’ displays PER ranging between 29 and 80 times earnings).
On the statistics front, CVS industrial production (seasonally adjusted) fell by 0.3% in the eurozone and by 0.2% in the EU, between October and November, according to Eurostat, after declines of respectively 0.7% and 0.5% between September and October.
Furthermore, the euro zone achieved a trade surplus of 20.3 billion euros in its trade in goods with the rest of the world in November, compared to a deficit of 13.8 billion euros a year earlier, according to a first estimate unveiled Monday by Eurostat.
Finally, according to the Destatis institute, the German economy would have contracted by 0.3% in 2023 (first official estimate of GDP) due to the persistence of inflation and the rise in interest rates.
In French company news, the European Commission has approved, under the European Merger Regulation, the acquisition of exclusive control of Quadra Energy, based in Germany, by TotalEnergies, based in France.
ArcelorMittal announces the signing of an aid contract supported by the State and aimed at supporting the decarbonization of the Dunkirk site.
Airbus announces that its Airbus Helicopters division has signed an agreement to acquire Aerovel and its unmanned aerial system (UAS), Flexrotor, to strengthen its portfolio of tactical unmanned solutions.
Finally, Solutions30 and Unsere Grüne Glasfaser (UGG), a joint venture between Allianz and Telefónica, are launching a strategic partnership to deploy a fiber optic FTTH network in Germany.
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