This Friday morning was marked by significant earnings releases as well as PMI index publications.

In France, the HCOB Flash Composite PMI for overall activity rebounded from 49.1 in January to 49.9, signaling a near-stagnation of private sector activity in February and surpassing the growth threshold only once in the past eighteen months.

In Germany, the Composite Purchasing Managers' Index (PMI), which covers both manufacturing and services, came in at 53.1 in February, up from 52.1 in January. It had been expected at 52.3. The services PMI rose from 52.4 to 53.4, ahead of the 52.4 forecast. The manufacturing PMI climbed from 49.1 to 50.7, beating expectations of 49.6.

PCE Index in Focus

 In the eurozone, the Composite PMI rose from 51.3 to 51.9, while the consensus was aiming for 51.5. Activity in the manufacturing sector returned to expansion, crossing the 50-point threshold. The index measuring it reached 50.8 points, up from 49.5 previously and above the forecast of 49.9 points. At 50.8 points, it is now at its highest level in 44 months.

"Private sector activity in the eurozone accelerated in February, with the composite PMI surprising on the upside thanks to a joint improvement in services and manufacturing," notes Christophe Boucher, adding that the manufacturing sector, which hit a low in December, has now moved back into expansion, buoyed in particular by the recovery in Germany and the initial effects of the stimulus plan.

In the United States, the PCE price index, the Federal Reserve's preferred inflation gauge, will be closely watched to refine monetary policy expectations. Q4 GDP figures, due at 2:30 p.m. and anticipated to rise by around 3%, as well as the preliminary composite PMI, Michigan consumer sentiment, and new home sales will round out the batch of indicators.

Air Liquide and Luxury Sector Shine

 On the corporate front, the Paris benchmark is supported by Air Liquide (+3.52%). The industrial gases supplier raised its dividend by 12% after posting annual results and targets deemed solid by the market. The luxury segment is enjoying a strong run with LVMH (+2.86%), Hermès (+2.65%), and Kering (+0.98%), boosted by Moncler's (+12.14%) fourth-quarter performance.

Coface (-6.66%) and Imerys (-6.30%) are posting the sharpest corrections within the SBF 120.

On the currency market, the euro is almost unchanged at $1.1766. The price of crude oil is down 0.90%.