(CercleFinance.com) – The Paris Stock Exchange ends this first session of the week at 7,589 points, in balance (-0.03%), while STMicro and Kering gained 2.5% and 1.9 respectively. %, far ahead of Alstom (-4%) and Air Liquide (-2%), the red lanterns of the day.
The day was punctuated by several statistics. This morning, investors saw a slight recovery in the Eurozone HCOB composite PMI index, which rose from 47.6 in December to 47.9 in January, reaching a six-month high , and thus indicates the smallest contraction in private sector activity in the region since last July.
In France, the HCOB PMI composite index of overall activity remains below 50 without change for an eighth consecutive month in January. It fell from 44.8 in December to 44.6 in January, signaling a slight acceleration in the decline in activity. The services subindex fell from 45.7 in December to 45.4 for the past month.
Across the Atlantic, T-Bonds rose by +14.5 points to 4.176% while the ‘composite’ PMI index recovered to a 6-month high of 52, despite the decline in the manufacturing PMI.
In Europe, the 10-year bund is moving towards 2.32% (+9 pts).
The monthly survey from the Institute for Supply Management (ISM) published this Monday is up for the 43rd month out of 44 (the last episode of contraction dates back to December 2022) in the wake of the services sector in the United States which accelerated more strongly than expected, by +3 points to 53.4 in January.
Wall Street must also digest an interview with Jerome Powell broadcast yesterday on the weekly show ’60 Minutes’: he reiterated his statements from last Wednesday, according to which a rate cut in March did not constitute the central scenario of the institution.
‘The head of the Fed also endorsed the ‘dot plot’ (summary of rate expectations of members of the central bank, Editor’s note) provided at the end of the meeting last December, favoring three rate cuts. rate this year’, react the Danske Bank teams.
‘For comparison, the financial markets are currently counting on five rate cuts in 2024’, recalls the Danish bank.
‘Powell highlighted the robustness of the economy, the strength of the job market and added that the diagnosis he made at Jackson Hole in August 2022, namely that rate increases would penalize economic activity , had not materialized until now’, underlines the Scandinavian establishment.
He also added that the current debt trajectory was ‘unsustainable’.
This does not prevent the dollar from continuing its upward rally against the Euro which fell by -0.6% towards $1.0725.
With meetings with the major central banks now over, the results season should monopolize investors’ attention this week in the absence of important economic statistics.
The results of Caterpillar and McDonald’s fell at lunchtime, before those of Eli Lilly, Spotify, Ford, Uber or Disney, expected in the coming days.
Several European heavyweights like BP, TotalEnergies, Equinor, Carlsberg, L’Oréal, AstraZeneca, Siemens, Unilever, Kering, ArcelorMittal and Hermès will also reveal their accounts in the coming days.
Also note a decline of -0.4% in ‘Brent’ oil towards $77.4 per barrel, and -0.9% in the ounce of gold towards $2021.
In French company news, Thales announces the signing by the British Ministry of Defense of a 1.8 billion pound sterling contract lasting 15 years to improve availability and resilience Royal Navy ships.
Casino announces that the European Commission issued a decision on February 2 authorizing the takeover of the distribution group by the EP Equity Investment III-Fimalac-Attestor consortium, under the regulations on foreign subsidies.
Finally, in order to make its services energy self-sufficient in France, Veolia indicates that it is accelerating its deployment of local carbon-free energies with the solarization of its post-operational waste storage sites in the country.
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