The Paris Bourse gained nearly 0.3% this morning, driven by Alstom (+2%) and TotalEnergies (+1.3%).

After having gained nearly 12% since the end of October, the Paris index was hit yesterday by profit-taking (-1.5%), a trend reversal accentuated by heightened volatility due to low trading volumes, with many players still on vacation.

We'll certainly have to wait for the US Federal Reserve's meeting at the end of the month for the market to regain a clearer direction", adds Christopher Dembik.

"It sorely needs visibility regarding the trajectory of monetary policy", continues the professional.

Rate futures now incorporate a 66% probability of a rate cut in March, according to the CME's FedWatch barometer, compared with 87% on Tuesday and 96% on Monday.

The trend on the stock markets is likely to depend on the day's economic indicators, as market players take note of numerous indicators that will enable them to assess the central banks' plans.

In France, investors took note this morning of new inflation data. According to Insee's provisional end-of-month estimate, consumer prices in France will rise by 3.7% year-on-year in December 2023, accelerating from 3.5% in November.

Also in France, the HCOB PMI composite index of overall activity in France reached its highest level since last August, rising from 44.6 in November to 44.8 in December. However, it continues to point to a sharp contraction in the French private sector.

In the eurozone, the HCOB composite PMI index of overall activity in the eurozone remained stable in December (at 47.6) compared with the previous month, continuing to point to a sustained decline in private sector activity.

In the bond market, the yield on 10-year US Treasuries eased to 3.93% as investors awaited the day's US indicators, having risen above the 4% threshold the previous day.

The European bond market is also easing, with the German ten-year yield returning to 2.03%, not far from the all-important 2% mark.

As hesitant as ever, the euro is back on the rise against the dollar, at $1.096/E.

The oil market confirms its favorable trend after soaring the previous day in the run-up to the release of US crude inventories, and in the face of disruptions to maritime trade at the Panama Canal and in the Red Sea.

Brent crude recovers 0.9% to $79.1/barrel.

In news from French companies, Spie announces the acquisition of JD Euroconfort, presented as a leading player in the fields of refrigeration, air conditioning and professional kitchens, an operation scheduled for completion in the first quarter of 2024.

TotalEnergies reports that it has completed the implementation of the agreements signed in March 2023 with Canadian food retailer Couche-Tard, and has received a total cash amount after adjustments and before taxes of 3.4 billion euros.

Finally, Argan announced that it had achieved 11% growth in rental income in 2023, to 184 million euros, thus exceeding its initial target of 182 million for the year, updated to 183 million at the time of the half-year results.


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