The Paris index was notably weighed down by Stellantis (-4.3% after announcing the gradual halt of its plug-in hybrid vehicle production in North America) and Capgemini (-4.2% following a downgrade by Morgan Stanley). On the SBF120, Eutelsat stood out with a 14.8% surge after entrusting Airbus Defence & Space with the construction of 340 new OneWeb low-Earth orbit satellites.

Elsewhere in Europe, markets ended in the green. Frankfurt gained 0.54%, driven by Fresenius (+3%) and Beiersdorf (+2.7%). London advanced more modestly but still edged up 0.17%, supported by Fresnillo (+6.2%) and Glencore (+3.1%).

Trump vs. Powell Showdown

 The day's headlines were dominated by escalating tensions between Donald Trump and Federal Reserve Chairman Jerome Powell. The rift between the two men is nothing new: the White House occupant regularly criticizes the central bank chief for not cutting key rates quickly enough.

This time, the standoff reached a new level as Jerome Powell revealed that the Justice Department had issued subpoenas to the Federal Reserve, hinting at the possibility of criminal proceedings. The reason? A murky affair involving renovations of Federal Reserve buildings. "A pretext," Powell dismissed.

"Jerome Powell's term as Fed governor runs until 2028, but it was expected that he would also step down from the chairmanship when his term ends in May. However, the question remains whether he will stay on as governor to support the Fed's independence, despite the legal risks," notes Jon Butcher, Senior US Economist at Aberdeen.

"Whether or not this lawsuit is justified, it signals that the administration is willing to keep up the pressure on the Fed to encourage a more accommodative monetary policy," he adds.

US Inflation in Focus Tomorrow

 Market participants are also awaiting a Supreme Court decision on the legality of tariffs imposed by the Trump administration on the rest of the world just under a year ago. A decision is expected within two weeks from January 14, reminds Christopher Dembik, investment strategy advisor at Pictet AM. According to him, the outcome is widely anticipated and already priced in. The market estimates there is a 70% probability of a ruling unfavorable to the Trump administration.

"Despite past tariff tensions, the US economy heads into 2026 with stronger-than-expected growth momentum, driven by tax cuts and productivity gains," assures Goldman Sachs.

Analysts forecast GDP growth of 2.5% for 2026, outpacing market consensus thanks to lighter taxes and robust consumer spending.

In this context, markets will be watching tomorrow for the US inflation figure for December, a closely monitored statistic by the Fed and one that could influence its monetary policy. "Unlikely to generate much interest," Pictet AM tempers, which, like the market, is expecting two 50-basis-point rate cuts in the first half.

On the bond market, the 10-year Bund yield stands at 2.80%, while the French OAT of the same maturity is at 3.50%. Notably, crude oil is climbing nearly 1% in London, hovering around USD 63.6, driven in part by geopolitical tensions in Venezuela and Iran.

Finally, the euro is up 0.4% against the greenback, trading around USD 1.167.