European stock markets are treading water overall (-0.1% in London, +0.2% in Frankfurt and Paris) as investor attention, focused in recent days on the inauguration of Donald Trump, is now set to refocus on the old continent.

Bank of America pointed out at the start of the week: "The 2024 fourth-quarter earnings season is about to kick off in Europe, with 10% of companies expected to report by the end of the month, rising to 40% by mid-February.

Consensus expects year-on-year European EPS growth to remain slightly positive in the fourth quarter, at 1%, helped by the weak euro", the bank said.

In addition to the corporate earnings season, investors in Europe are likely to be paying close attention to the political situation in Germany, where early parliamentary elections are due to be held on February 23.

A center-right-led coalition seems to be the most likely outcome of next month's German federal elections, according to the polls", notes Barclays on this subject, estimating that "growth could be boosted over time".

For the time being, the prospect of fiscal expansion could be negative for Bunds, but bring better news for credit, equities and the euro, in our view', continues the British bank.

The morning's only piece of macroeconomic data, France's business climate, was virtually stable in January, according to the Insee synthetic indicator, which gained one point to 95 and thus remained below its long-term average (100).

In other stock news, Puma plunged 17% in Frankfurt, as the sports equipment manufacturer saw its results deteriorate last year, forcing it to launch a cost-cutting program in order to meet its margin targets.

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