The Paris index is being lifted by Pernod Ricard (+3.8%) and Renault (+2.4%), as well as a rebound in luxury stocks (+1.4% for LVMH, +1.1% for Kering). In London, Burberry is up 4% (after reporting revenue slightly above expectations), allowing the City to stay on an even keel. These export-dependent names are regaining some ground after the air pocket of recent days and U.S. threats to impose new tariffs.
Markets are still digesting the latest attacks by the US president on the world order that has been carefully built over the past 80 years. Beyond Washington's expansionist ambitions over Greenland, Donald Trump has also recently backed the creation of a "peace council", a still-nebulous organisation that could, in time, rival the UN, an institution loathed by the billionaire. While the remit of this body remains unclear, its entry fee has already been set... one billion euros. Israel and Morocco have already announced their intention to join this "club". Sweden has just declined, as did France yesterday.
It was after that French refusal that Donald Trump floated the idea of a 200% tax on French wines and champagne. "Not quite the behaviour [of an ally]," Emmanuel Macron said, since then urging not to accept "a world order that would be decided by those who claim to have the loudest voice, or the biggest stick".
Trump, Davos and tariff threats: geopolitical jitters weigh
It is against this tense geopolitical backdrop that the Republican is expected in Davos this afternoon for the World Economic Forum. His speech will be closely watched as the EU-US relationship appears to have rarely been so fragile.
"Anything is possible. The US president could opt for de-escalation or continue his offensive. Should we worry? Probably not. The Trump administration has accustomed us to headline-grabbing moves. In the end, the impact is manageable for markets," Christopher Dembik, investment strategy adviser at Pictet AM, said this morning.
On the data front, the calendar is light today. Markets will simply keep an eye at 4:00 pm on US pending home sales.
Stocks to watch
In company news, Danone is sharply lower (-6.5%), as analysts worry about the drop in China's birth rate, which could affect the group's future growth. Jefferies and Deutsche Bank have raised concerns. Bank of America reiterated its underperform rating this morning, with a slightly trimmed target price of €70 to €69. Market sources also resurfaced a statement from Singaporean authorities dated 17 January, about a recall involving two infant formulas (NAN HA1 SupremePro from Nestlé and Dumex Dulac 1 from Danone) after the detection of the cereulide toxin, linked to a common ingredient. One mild case was reported, the authorities said. The news had already been reported four days ago, but tensions that have emerged around the Nestlé file after multiple recalls may have fuelled volatility.
Rio Tinto (+5.3%) posts one of the biggest gains in the Stoxx Europe 600 as its copper-equivalent (CuEq) output rose 8% year on year in 2025, with shipments up 5%, helped by the strong ramp-up at Oyu Tolgoi.
Edenred is up 8% even as Barclays maintains an equal weight rating, with a target price cut from €36 to €21. Kepler Cheuvreux, for its part, is also slashing valuations but keeps a buy rating: target lowered from €28 to €18 on Pluxee and from €40 to €28 on Edenred. The provisional suspension of a government decree in Brazil is also supporting Pluxee and Edenred.
Finally, Burberry is up 4% after reporting quarterly figures slightly above expectations.
In bonds, the 10-year Bund yield is steady at 2.86%, with the same-maturity OAT also flat at 3.52%.
In London, Brent is up 0.7% at $64.4 a barrel.
The euro is down 0.2% against the greenback at $1.17.
