After climbing as much as 0.5% in early afternoon trading, the Paris index ended the session with a much more modest performance. At the closing bell, the CAC 40 edged up by 0.06%, buoyed in particular by L'Oréal (+3.4%), which recovered some ground after its sharp drop on Friday (-4.9%). The stock benefited from analyst commentary that downplayed the French cosmetics giant's underperformance in the fourth quarter of 2025.

Meanwhile, Société Générale rose 2.9% after a favorable analysis from Goldman Sachs, which reiterated its buy recommendation and raised its 12-month price target by around 15%, to 84 EUR.

In contrast, Dassault Systèmes endured a nightmare session. The stock continued its plunge, falling 10.4% and now showing a loss of about 28% over four sessions. Berenberg, for its part, cut its price target from 30.3 to 23 EUR. AlphaValue also downgraded its recommendation, shifting from buy to reduce.

Other Movers

In Germany, the DAX was notably weighed down by a drop in Siemens (-6.1%), with the stock highly exposed to concerns around AI.
"We are facing a dislocation of the markets. Indices are near all-time highs, but some sectors are experiencing unprecedented declines. The culprit: exaggerated fears around AI and a lot of speculation," noted Christopher Dembik, investment strategy advisor at Pictet AM, this morning.

According to him, "hedge funds, which have so far made a winning bet by selling software companies, have increased their positions in recent days. This means the sector's decline is probably not over. The same goes for the Magnificent Seven, who have had a tough start to the year despite strong results and are underperforming the S&P 500," the specialist added.

Grégoire Kounowski, investment advisor at Norman K, believes the global economy is now moving toward a multipolar model, structured around several hubs — notably the United States, China, and Europe — each seeking to strengthen its strategic autonomy. "This evolution increases the need for greater portfolio diversification, both geographically and monetarily, as well as through commodities."

Elsewhere in Europe, Orsted gained 4.5%, helped by an upgrade from Kepler Cheuvreux, which raised its recommendation from hold to buy, with a price target of 175 DKK. Morgan Stanley also raised its target on the stock from 147 to 160 DKK.

Conversely, Norsk Hydro fell 1.6% after Goldman Sachs downgraded its recommendation from hold to sell, with a target set at 69 NOK.

Questions Around Macro Data

On the statistics front, seasonally adjusted industrial production in the eurozone contracted by 1.4% in the euro area and by 0.8% in the European Union between November and December.

Tomorrow will bring the release of the ZEW index in Germany (an advanced indicator of economic sentiment published monthly) and the Empire State index across the Atlantic (measuring manufacturing activity in New York State).

Meanwhile, at Nomura, analysts anticipate a surge in wages in the eurozone in the fourth quarter of 2026, with medium-term upside risks. "European leaders appear to favor a multi-speed Europe to spur growth," the research firm notes.

Finally, also on the statistics front, Morgan Stanley commented this morning on the consumer price index, which was milder than expected in the United States, estimating that this data renewed expectations for monetary easing by the Federal Reserve. "Markets are now pricing in about 60 basis points of rate cuts by the end of 2026, up from 50 previously," analysts said.

Additionally, market participants will remain attentive in the coming days to announcements from the US Supreme Court. The court is set to rule on the legality of tariffs imposed via the International Emergency Economic Powers Act (IEEPA). "The next possible decision dates are February 20, 24, and 25. Be aware, as in January, the final decision could be postponed to March," warns Christopher Dembik.

In the bond market, the yield on the 10-year Bund stands at 2.74%, while the OAT of the same maturity is at 3.33%, a spread of 59 basis points.
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Finally, in London, Brent crude is trading around 68.5 USD per barrel (+1.2%). Gold is down 1.2%, at 4,980 USD an ounce. The euro slipped 0.1% against the greenback, to around 1.185 USD.