After five consecutive sessions of gains, the Paris Bourse paused this morning to stabilize at around 7735 pts, despite the good form of the luxury goods sector, with +1.6% for LVMH and +0.7% for Hermès.

The session is likely to be livelier than the previous day on the equity markets, with New York reopening after being closed yesterday for the three-day Martin Luther King Day weekend. For now, benchmark index futures suggest a recovery into the green.

In his inaugural speech Donald Trump unsurprisingly promised to put America first, but remained vague about implementing new tariffs.

Equity investors are filling up, as the promised tax cuts and deregulation policies should boost corporate profits", says 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.

Nevertheless, January is often a positive month for equities, a phenomenon known as the "January effect", when traders build up 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 market participants will take note of the German ZEW investor confidence index, which will give an indication of the evolution of economic sentiment on the other side of the Rhine, one month ahead of the early elections in February.

With the US markets closed, the bond market is little changed, allowing the yield on the ten-year German Bund to ease slightly to 2.49%, while the yield on the OAT with the same maturity falls below the 3.30% threshold.

On the oil market, Brent crude oil is suffering from profit-taking and is trading at around $79.4 (-0.5%).

In French company news, Thales Alenia Space and Hispasat announce the launch of the development, manufacturing, verification and validation phase for the prototype of QKD-GEO, the Spanish quantum key distribution system from geostationary orbit.

Lacroix announces the sale of its City-Mobility segment to Swarco, a transaction which should be effective by the end of the first quarter of 2025 at the latest.

Finally, Renault Group announces the appointment of Duncan Minto as its new Chief Financial Officer, effective March 1. He will succeed Thierry Piéton, who chose to leave the Group on February 28 to 'take up a new professional challenge, to be announced shortly'.

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