After a successful start to the year, the Paris Bourse is set to take a short break on Tuesday morning as it awaits the reopening of Wall Street after the long New Year's weekend.

At around 8.15 a.m., the CAC 40 index futures contract - expiring at the end of January - was down 38.5 points at 6,560 points, signalling a slight decline at the opening.

Yesterday, the Paris market ended its first session of the year with a notable 1.9% rise to 6,594 points, driven by the automotive and energy sectors, albeit in limited volumes.

The small bearish alert of Friday, the last session of the 2022 financial year, was lifted in early trading, as the CAC managed to reposition itself above its short-term support at 6505 points.

However, this rebound does not appear to be sufficient to reverse the downward trend that began in December, after several failed attempts below the 6,600-point mark.

'The CAC 40 index is therefore starting the new year from scratch, with the comfort of a reference chart threshold close to the 6,500-point mark', commented technical analysts at Kiplink Finance.

According to the Paris-based fund manager, this valuation level suggests 'significant upside potential if the various elements making up the markets align without further hindrance'.

The first week of trading generally sets the trend for equity markets, but the opening of trading in New York in the early afternoon will undoubtedly set the tone for the start of the year.

For the time being, the direction of futures contracts on the major US markets is pointing to a very slightly upbeat start to the session on Wall Street.

There are no economic indicators on the agenda today in the US, but the morning will be punctuated by a number of key statistics in Europe.

Unsurprisingly, all eyes will remain on inflation, with the release of Germany's consumer price index for December.

With the recent easing of the energy crisis and falling gasoline prices, the inflation rate is expected to slow from its recent highs.

Investors will have more indicators to get their teeth into at the end of the week, with the closely watched US employment figures for December expected on Friday.

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