The Paris stock market returned to equilibrium at around 4:30 p.m., on the back of smaller-than-expected declines on Wall Street: the CAC is now down just -0.1% (to 7,090), with volumes still limited (1.6 billion euros in 8 hours of trading).
The CAC40 was buoyed by Thalès and Kering (+1.6%), but continued to be weighed down by Renault, which shed almost 4% as new talks opened on a lighter partnership.
European indices fell by -0.6% (E-Stoxx50) to -1.2% (Amsterdam), while US indices again widened their losses, with -0.7% on the S&P500 and -1.6% on the Nasdaq: it was as if only the -0.1% decline in the Dow Jones was to be deplored.

Caution is also the order of the day, as the week will be dominated by multiple earnings releases: more than 100 S&P 500 companies, including 6 Dow Jones companies, are due to publish their fourth-quarter accounts.

So far, the earnings season has been rather disappointing, with 69% of the 29% of S&P 500 companies that have released earnings beating Wall Street expectations (compared with 77% on average over the past 3 years).

In addition to this flurry of results, the week will be marked by the meeting of the Federal Reserve's Monetary Policy Committee, which kicks off tomorrow.

24 hours after the Fed's statement on Wednesday, the other highlight of the week will be the European Central Bank's (ECB) monetary policy decision on Thursday.

While a 50bp rate hike is widely anticipated at the end of the ECB's Governing Council meeting, investors will be closely scrutinizing the comments of its President, Christine Lagarde.

All attention will be focused on the announcements to follow: what pace in March? what terminal level for the deposit rate and what timeframe?" comments Julien Russo, portfolio manager at Swiss Life Asset Managers France.
On the figures: Germany's GDP fell by 0.2% in Q4 2022 compared with Q3, according to Destatis price-, seasonally- and calendar-adjusted data, as private consumer spending, which had underpinned the German economy in the first three quarters, came in below expectations in Q4.

The Federal Statistical Office also reported economic growth of 1.9% for 2022 as a whole, down 0.1 percentage points on the initial estimate.

More encouragingly, the Economic Sentiment Indicator (ESI) rose again in January in both the European Union (+2.3 points to 98.0) and the eurozone (+2.8 points to 99.9) compared with the previous month, according to the European Commission.

"With this third consecutive rise, the ESI is approaching its long-term average", stresses Brussels, which notes that confidence is up in industry, services, retail and households, but down in construction.

The Employment Outlook Indicator (EEI) also rose (+2.3 points to 108.5 in the EU and +2.7 points to 110.1 in the eurozone), and is therefore well above its long-term average.

Bond markets began the week lower, with yield increases of around +6 on our OATs or Bunds (at 2.770% and 2.3040% respectively, Italian BTPs posted +7Pts to 4.3000%.... and US T-Bonds are +3.3Pts at 3.552%

The Euro had started the day on a firm note, reaching 1.0910 against the $ (it gained 0.4% against the Swiss Franc and the Pound, +0.3% against the $), but it has just lost its lead in 2 hours against the $ to 1.0875.

In company news, Renault Group (-4%) announces that it has made progress in its discussions with Nissan Motor on defining the new foundations of their partnership: agreements are being finalized for a transaction that will remain subject to approval by the Boards of Directors.

The two companies are considering 'high value creation' operational projects, and new initiatives to reinforce their strategic agility, including a possible investment by Nissan in Ampere, an electric and software pure player founded by Renault.

Sanofi announces that Brussels has extended the marketing authorization (MA) of its Dupixent in the EU, making it the first and only targeted drug specifically indicated for the treatment of eosinophilic esophagitis in Europe and the USA.

Orpea - suspended from trading on Monday - announces the resumption of discussions with a group of third-party French investors led by the Caisse des Dépôts et Consignations, and a group of financial creditors holding around 50% of its unsecured debt, worth 3.8 billion euros.

On Monday, Saint-Gobain announced the completion of the acquisition of Termica San Luis, an Argentine stone wool specialist, an operation designed to strengthen its presence in the country.


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