The Paris stock market is trading at historic highs this morning, around 7,745 points (+0.9%), driven by the automotive sector, with +6.4% for Renault and +4% for Stellantis following the publication of their respective results last night and this morning (see below).

European and US equity markets have had a good start to the year so far, with investors now focusing on reassuring news on the economic front, and relegating their questions about monetary policy to the back burner.

The new data expected today should enable them to better assess the health of the economy, and therefore the timing of future monetary easing by the major central banks.

While the timing and extent of the first rate cuts are subject to debate and recalibration, market participants know that any future policy adjustment will be favourable to them.

In the United States, retail sales figures may moderate in January, even though US household morale is close to all-time highs.

Other indicators that will liven up trading include import prices, jobless claims, industrial production and the New York Fed's Empire State index.

The fixed-income markets are easing a little, having posted one of their worst sessions since October 2023 on Tuesday. The yield on ten-year Treasuries is down to 4.24% (-3 pts), while the German Bund is down to 2.31% (-6 pts).

In French company news, Renault last night published financial results described as historic, including net income of 2.3 billion euros, up 3 billion euros vs. 2022.

Stellantis announced this morning a 6% increase in net sales for 2023, to 189.5 billion euros, while net income rose by 11% to 18.6 billion euros, with industrial free cash flow reaching 12.9 billion euros (+19%) compared to the previous year.

For 2023, Safran reports a 72% increase in net income (group share) to 2.03 billion euros, as well as recurring operating income of close to 3.17 billion euros on an adjusted basis, representing a margin improvement of one point to 13.6%.

Airbus reports adjusted EBIT up 3% to 2.21 billion euros in the fourth quarter, slightly below the consensus target of 2.27 billion euros. Sales rose by 11% to 22.89 billion euros in the last three months of the year, against market expectations of 22.25 billion euros.

Finally, Schneider Electric reported a 15% increase in net income (group share) to four billion euros, with adjusted EBITA of 6.41 billion euros, representing a margin of 17.9%, and organic growth of 180 basis points.

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