Other major European markets experienced almost the same temporary downturn around 2:30 p.m. The DAX 40 in Frankfurt ultimately edged up 0.09% to 25,312.11 points, while London's FTSE 100 gained 0.70% to 10,922.85 points.

A Busy Macro-Economic Agenda

The session, which was particularly calm until 2:30 p.m., became a bit more animated with the release in the United States of the January producer price index, which rose significantly more than expected. Forecasted to increase by 0.3%, it actually climbed by 0.5%. In core data, excluding food and energy products, the difference was even more pronounced with a rise of 0.8% versus the expected +0.3. This inflation indicator unsettled investors as it leaves the U.S. Federal Reserve with less room to ease its monetary policy.

According to the CME Group's FedWatch Tool, the probability of the Fed maintaining its rates at its March 18 meeting slightly increased after this macroeconomic statistic.

According to Edmond de Rothschild Asset Management, "several Fed members have adopted a more hawkish tone, emphasizing the need for tangible evidence of disinflation before any rate cuts."

Among other statistics of the day, in France, Insee confirmed 0.2% growth in Gross Domestic Product in the fourth quarter, following a 0.5% increase over the previous three months.

Also in France, inflation rose by 0.7% in February according to preliminary data, whereas analysts had expected a 0.5% increase. Year-on-year, the rise is 1%, compared to a forecast of +0.8%.

Conversely, in Germany, inflation slowed over the same period as energy prices fell further, according to preliminary data released Friday by the Federal Statistical Office.

Finally, in the United States, the Chicago PMI rose when a decline was expected. It reached 57.7 points, compared to expectations of 52 and a previous reading of 54. At 57.7 points, it is at its highest level since May 2022.

Busy Corporate News

In France, corporate news was quite dense. Investors welcomed Clariane's positive 2025 results publication. The retirement home specialist's stock jumped 7.56%, marking the biggest gain in the SBF 120.

Also performing well, bioMérieux gained 3.73%, thanks to the presentation of its 2025 accounts and 2026 objectives.
Conversely, the results from Lisi, Valeo, and Viridien were punished, with their shares losing 10.54%, 3.27%, and 9.39% respectively.

In Europe, BASF slipped 2%. The German chemical company was slightly penalized for its somewhat conservative 2026 targets.

Finally, WPP (-2.22%) reported a drop in profit and revenue for the 2025 fiscal year. The group announced a final dividend of 0.075 GBP per share compared to 0.244 GBP in 2024. The market reacted poorly to these fragile figures.

U.S./Iran Tensions Return to the Fore

Despite "significant" progress according to Oman's foreign minister, some signs suggest that military intervention remains on the table.

The U.S. embassy in Jerusalem has authorized non-essential staff to leave Israel for security reasons. For the same reasons, China has advised its nationals not to travel to Iran and those present in the country to leave.

Amid these concerns, oil prices are rising sharply. In London, North Sea Brent is up 2.25% to $72.39, and WTI in New York is up 2.20% to $66.60.

On the currency market, the euro is up against the greenback (0.16%) and is trading at $1.1822.