The CAC40 has erased 80% of its initial losses and is now back above 7,400pts (7,390 being its annual low).

The Euro-Stoxx50 is back to near-positive territory (-0.1%) and will easily preserve its annual low of 4,440 from January 11.
The rally that has been underway since 3:30 p.m. is linked to the unexpected resilience of Wall Street (expected down -0.3% after the three-day weekend of 'Martin Luther King Jr. Day' weekend), which returned to equilibrium overall (S&P500 -0.1%, Nasdaq +0.1%).


The day got off to a bad start in Asia, as the Tokyo Stock Exchange (-0.8%) interrupted its upward sequence (6 consecutive sessions of gains, for a +7.5% gain leading to the 1st test of the 36,000Pts mark in the last 24 years).000Pts in 24 years).

China's stock market ended mixed (-0.3% to +0.3%), as the government forecasts growth of 5.2% in 2023.
The Seoul stock market plunged -2.5% following the escalation of tensions with North Korea.

Investors discovered Morgan Stanley's pre-market results: they were weighed down by a $535 million provision, but sales exceeded expectations thanks to the investment banking business.

On the macro front, manufacturing activity in the New York region continued to contract sharply in January: the Empire State index sank further into the red zone this month, to -43.7, the lowest since May 2020, compared with -14.5 the previous month.

Economists were, on the contrary, forecasting a rise in this indicator to around -5.

The new orders sub-index worsened to -49.4, from -11.3 in December, while the component measuring the number of hours worked deteriorated to -6.1, from -2.4 in December, highlighting a weakening labor market.

In Europe, the ZEW index of German investor sentiment edged up by +2.4pts to 15.2 points, compared with December 2023... but Germany continues to suffer from freeway and city-center blockades (farmers and truckers opposed to the abolition of fuel rebates).

In a sign of investors' reduced appetite for riskier assets, the dollar, seen as a safe-haven asset, rallied sharply against the euro, which fell by -0.65% to $1.088.

On the bond market, the yield on 10-year US Treasuries tightened by 3.95% to 4.0250%, despite the poor Empire State.

The yield on Bunds and OATs eased by -1Pt to 2.189% and 2.718% respectively.

Oil prices are consolidating modestly after last week's sharp rise due to tensions in the Red Sea, with Houthi rebels disrupting the passage of ships through this maritime channel.

Brent crude is down 1% at $77.5 a barrel, while US light crude (West Texas Intermediate, WTI) is down -1.5% at $72.

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