The Paris Bourse is down slightly (-0.1 to -0.2%), around 7580 pts, penalized in particular by Alstom, which is down 3.2%, and Stellantis (-2%).
The Euro-Stoxx50, on the other hand, remains in the green thanks to Unicredit, which is up +10%... despite the downward revision of OECD forecasts, with growth revised to 0.6% in 2024 from +0.8% and +1.3% in 2025.

This morning, however, investors took note of a slight upturn in the eurozone's HCOB composite PMI index, which rose from 47.6 in December to 47.9 in January, reaching a six-month high and indicating the weakest contraction in private-sector activity in the region since last July.

The DAX also remains at equilibrium despite a fall in the 'services' PMI, a decline in exports and growth of 0.3% at the end of 2024 (after a 1st half in recession, i.e. 4 negative quarters).

In addition, bond markets continued to deteriorate after Friday's very poor session: Bunds tightened by +7pts to 2.3080%, Italian BTPs by +7.5pts to 3.885% and our OATs by +8.5pts to 2.808%,

In France, the HCOB PMI composite index of global activity remained unchanged below the 50 mark for the eighth consecutive month in January. It fell from 44.8 in December to 44.6 in January, signalling a slight acceleration in the decline in activity. The services sub-index fell from 45.7 in December to 45.4 for the month.

Across the Atlantic, T-Bonds tightened by +9.2pts to 4.124%: in an interview broadcast yesterday on the weekly program '60 Minutes', Jerome Powell reiterated his statements of last Wednesday, according to which a rate cut in March was not the institution's central scenario.

The Fed boss also endorsed the 'dot plot' provided at the end of last December's meeting, in favor of three rate cuts this year", commented Danske Bank.

By way of comparison, the financial markets are currently forecasting five rate cuts in 2024", the Danish bank points out.

"Powell highlighted the robustness of the economy and the strength of the job market, and added that the diagnosis he made in Jackson Hole in August 2022, namely that rate hikes would penalize economic activity, had not materialized to date", the Scandinavian bank stresses.
It also added that the current debt trajectory was 'unsustainable'.
This is not stopping the Dollar from continuing its bullish rally against the Euro, which is down -0.45% towards $1.0740.

With the meetings with the major central banks now behind us, the earnings season should monopolize investors' attention this week in the absence of any major economic statistics.

Caterpillar and McDonald's results were released at lunchtime, ahead of those of Eli Lilly, Spotify, Ford, Uber and Disney, scheduled for the coming days.

Several European heavyweights such as BP, TotalEnergies, Equinor, Carlsberg, L'Oréal, AstraZeneca, Siemens, Unilever, Kering, ArcelorMittal and Hermès will also be unveiling their accounts in the next few days.

Brent crude oil is down -0.5%, while the ounce of gold is down -0.3% at $2,023/Oz.

In French company news, Thales reports that the UK Ministry of Defense has signed a £1.8 billion, 15-year contract to improve the availability and resilience of Royal Navy ships.

Casino announces that on February 2, the European Commission issued a decision authorizing the takeover of the retail group by the EP Equity Investment III-Fimalac-Attestor consortium, under foreign subsidy regulations.

Finally, in order to make its services energy self-sufficient in France, Veolia says it is accelerating its deployment of local decarbonized energies with the solarization of its post-operating waste storage sites in the country.

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