The Paris stock market is consolidating its initial positive momentum, with the CAC40 gaining 0.6% to 7,635 and coming within 1% of its recent zenith of 7,700, well helped by Schneider (+2.6% and a record high of 193E), TotalEnergies, Téléperformances and Air Liquide, which took a little more than 1.8%... but trading volumes remain anecdotal, with 1.3 billionE exchanged.

The Euro-Stoxx50 with +0.7% to 4,689 sets a new all-time record (vs. 4,676 on February 2), without even benefiting from the support of the S&P500 (unchanged at 4,942 after initially testing 4,956, closing to within 1% of the 5,000Pts).
The Nasdaq struggles to find a second wind and consolidates below the 15.600 (-0.2% towards 15,575).

On the bond front, sovereign yields are finally marking time, and a timid upturn is taking shape.

The yield on the 10-year German Bund is easing towards 2.2975%, our OATs are hovering above 2.800%, while the US 10-year is down 4pts towards 4.124, compared with 4.165% the previous day, which is still close to the highs seen since the start of the year, and the peaks of January 24 and December 13.

Following recent statements by Federal Reserve Chairman Jerome Powell, investors are repositioning themselves to expect rates to remain at current levels for a slightly longer period than expected.

However, these tensions are being counterbalanced by the release of numerous statistics confirming the robustness of the US economy.

With data increasingly suggesting a 'soft landing' (economic slowdown without recession) in the US, markets are focusing more on growth prospects rather than the threat of inflation.

The start of 2024 has so far been characterized by a "goldilocks" scenario, an environment deemed favorable for financial markets, particularly equities.

In addition to good economic indicators, a number of rather reassuring earnings releases have reminded yield-seeking investors of the case for equities.

The fourth-quarter earnings season continues today with announcements from UBS, Eli Lilly, Toyota, Linde, Amgen, bp, Ford and Spotify.

In terms of indicators, this morning investors took note of German industrial orders: these rose by 8.9% month-on-month in December 2023 after adjustment for seasonal and calendar variations, according to Destatis, following stability in November (revised from an initial estimate of +0.3%).

In the manufacturing industry, December's sharp rise was due to a very high volume of large orders in various sectors. In particular, an exceptionally high number of aircraft were ordered.

This is hardly inspiring for Forex traders, as the Euro is down -0.1% at 1.0735.
Brent crude oil is recovering slightly, by +1% at $78.75 in London.

Finally, in news from French companies, Neoen announces that it has finalized the joint financing of the second tranche of its Goyder South Stage 1 wind farm (203 MW) and its Blyth Battery (238.5 MW / 477 MWh), which thus benefit from a loan granted by a syndicate of five lenders.

Dassault Systèmes announced on Tuesday that it would be strengthening its strategic partnership with Assystem to accelerate the development of next-generation nuclear reactors.



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