With a 4.7% surge, L'Oréal is leading the charge in Paris, the stock bolstered by a recommendation upgrade from UBS, which raised its rating from "neutral" to "buy" and lifted its price target from 367 to 430 EUR.

The analyst notably highlights the sector's accelerating growth and strengthening market share gains. The world's number one cosmetics group is pulling Hermès (+3.2%) and Kering (+2.8%) in its wake.

BNP Paribas is also among the top performers. After gaining 3.5% yesterday, the French bank is up another 3.3% today, following a JPMorgan analysis that upgraded its rating from "neutral" to "overweight," with a price target raised from 89 to 102 EUR. Markets are also welcoming news that BNP Paribas is expected to appeal in the coming weeks against its USD 21 million fine in the Sudan case, where it is accused of financing a regime responsible for massive human rights violations.

Other European stock markets are also performing well: London is up 0.4%, helped by Glencore (+8%) after confirmation of preliminary merger talks with Rio Tinto involving a share swap. The market is clearly betting on a more favorable deal for Glencore: Rio Tinto, in contrast, is down 3%, as investors question the terms of the agreement and the risk of overpaying for the target.

J Sainsbury (-5%) is dropping after a mixed earnings report. Strong growth in the grocery segment, with Christmas sales up 5.1%, is not enough to offset the persistent weakness of Argos and non-food activities, which fell well short of expectations.

In Germany, sentiment is somewhat more subdued. The DAX is inching up less than 0.1%, balanced between gains for Zalando (+2.5%) and adidas (+2.3%) and declines for Allianz and Commerzbank (-2%).

The morning was marked by the release of several statistics across the continent. According to preliminary Eurostat estimates, seasonally adjusted retail trade volume increased by 0.2% in both the eurozone and the EU between October and November 2025.

In France, manufacturing output rose by 0.3% between October and November after being nearly flat the previous month (-0.1%), and overall industrial production was almost unchanged (-0.1% after +0.2%).

Finally, French household spending on goods fell month-on-month in November (-0.3% in volume after +0.5% in October 2025 - revised data), according to Insee this Friday. Energy consumption fell again (-2.0% after +1.5%), as did food consumption (-0.2% after +0.3%), while spending on manufactured goods accelerated (+0.4% after +0.1%).

US Monthly Jobs Report in the Spotlight

 Markets are now turning their attention across the Atlantic, where jobs creation figures will be released in the early afternoon. Closely watched by the Fed, this statistic could influence the US central bank's upcoming monetary policy decisions.

The consensus is for an average of 60,000 nonfarm payrolls created in December, roughly in line with November's 64,000, with the unemployment rate expected to ease to 4.5% after rising to 4.6% the previous month.

Meanwhile, the US Supreme Court could issue its opinion as early as this afternoon on the legality of tariffs imposed by Donald Trump on the rest of the world—a measure that shook global markets just under a year ago.

"If the court rules against Trump, we expect the Trump administration to quickly rebuild its tariff wall, but this time on different legal grounds," Danske Bank's teams noted this morning.

Market participants are also preparing for an eventful 2026. "We are notably considering the possibility of an AI bubble bursting, the preservation of the US Federal Reserve's independence, a potential economic slowdown in Germany, the threat of a sovereign debt crisis in the eurozone, and the consequences of a ceasefire in Ukraine," report Commerzbank teams.

In London, Brent crude is trading at USD 62.1 (-0.9%). The euro is steady against the greenback at USD 1.164.