CAC40: green in the wake of Wall Street

(CercleFinance.com) - The Paris Bourse ended the session with a gain of 0.
69%, at 7474 points, benefiting in particular from the performances of Société Générale, URW and Michelin, which each took around 3%.

The markets welcomed the release of the US CPI: the US consumer price index rose by 2.9% in December 2024 compared with the same month in 2023, an annual rate in line with expectations and up 0.2 points on November.

Excluding energy (-0.5%) and food (+2.5%), two traditionally volatile categories, the underlying annual inflation rate came out at 3.2% last month, a level slightly below economists' consensus.

In addition, economic activity declined in New York State in January, according to companies responding to the Empire State Manufacturing Survey. The overall index of economic conditions fell by fifteen points to -12.6.

Labor market indicators showed stable employment levels, but a decline in the average length of the workweek. Increases in input and selling prices accelerated.

Businesses were more optimistic that conditions would improve in the months ahead.
Against this backdrop, indices soared in New York, with +1.4% for the Dow Jones, +1.5% for the S&P500 and even +2% for the Nasdaq.

On the bond front, the 10-year US yield fell from 4.79% to 4.646%, while the Bund for the same maturity eased to 2.52% (-10pts) and the French OAT to 3.35% (-11pts).

The OAT/Bund spread contracts to +83pts, due to the feeling that the Bayrou government will escape censure tomorrow
New orders fell slightly, while shipments remained virtually unchanged.

This morning, investors had taken note of inflation data for France. Over one year, consumer prices in France rose by 1.3% in December 2024, a stable annual rate compared with November, in line with the provisional estimate published last week by Insee.

The markets are anticipating a frantic second half to the week, with a flurry of earnings releases and an intense macroeconomic agenda.

It's off to a good start for US banks with good Q4 results: rises of between +3.8% and +6.5% are seen in Morgan Stanley and Blackrock (+3.7%),(+4%), Goldman Sachs, Citi and Wells Fargo (+5.2%)... but JPMorgan remains a little behind (+1%).

It remains to be seen how strong consumer spending will be and what the country's economic outlook will be in light of Donald Trump's first policy decisions.

In other news, Brent crude rebounds +1.4% to $81.5 a barrel.
On the currency front, the euro loses ground against the greenback, at $1.027/E (-0.3%).

In French company news, Esker claims the best year in its history, with full-year 2024 sales of 205.3 million euros, up 15% at constant exchange rates and on a reported basis.

Under the framework agreement signed with TenneT in May 2023, and following the first contracts announced in March 2024 for the BalWin3 and LanWin4 links, Nexans reports that it has won the contract for the LanWin2 project, worth one billion euros.

Voltalia announces the start of construction of the Los Venados solar project, with a total capacity of 19.7 megawatts, in the Tolima region. The Group's first project in Colombia, it is scheduled for commissioning in the first quarter of 2026.


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