CAC 40: a little more caution after five sessions of gains
At around 8:15 a.m., the 'future' contract on the February maturity CAC 40 index was down 12.5 points at 7744 points, heralding a return to caution after the recent bull run.
The session is likely to be busier than the previous day on the equity markets, with New York reopening in the wake of the three-day Martin Luther King Day weekend.
For the time being, benchmark index futures suggest a recovery in the green.
Yesterday's inauguration speech by the 47th President of the United States rather reassured investors, who had been dreading hearing more details about the protectionist measures of Joe Biden's successor.
While he unsurprisingly promised to put America first, the businessman remained vague about the introduction of new tariffs on his first day back in the White House.
Against this backdrop, the dollar resumed its decline against the euro, allowing the single currency to climb back towards 1.0370, and Asian markets were trending upwards late on Tuesday, with gains of 0.3% for the Tokyo Stock Exchange's Nikkei index.
Equity investors are filling up, as promised tax cuts and deregulation policies should boost corporate earnings", explains Bruno Lamoral, portfolio manager at DPAM.
Analysts expect the Paris Bourse to benefit from the excitement surrounding Donald Trump's return to the Oval Office.
Investors have remembered that his first presidency was marked by high volatility in financial assets, but above all by a 68% rise in the S&P 500", points out Christopher Dembik, investment strategy advisor at Pictet AM.
"The new US administration has made no secret of its intention to consolidate its hegemony in AI, notably by ensuring continuous, low-cost access to energy", he stresses.
Logically, this should be a supportive factor for technology stocks", concludes Pictet's strategist.
Beyond the hopes raised by the inauguration of the new president, his unpredictability could generate renewed volatility on the markets, especially in the first days of his term.
The fact remains that January is often a positive month for equities, a phenomenon known as the "January effect" which sees traders build their first buying positions for the year.
The CAC 40 is no exception to the rule in 2025, with an increase of almost 4.8% since January 1.
On the macroeconomic front in Europe, this morning traders will be taking note of the ZEW index of German investor confidence, which will give an indication of the evolution of economic sentiment in Germany, one month ahead of the early elections in February.
With the U.S. markets closed, the bond market was little changed, allowing the yield on the ten-year German Bund to ease slightly to 2.50%, while the yield on the OAT with the same maturity fell back below 3.30%.
On the oil market, Brent crude oil is suffering from profit-taking after its recent peak of over $80 a barrel, while US light crude (West Texas Intermediate, WTI) is down 0.8% at $77.2.
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