CAC40: falls below 8100 pts, penalized by banks

(CercleFinance.com) - The Paris stock market lost nearly 0.
4% this morning, around 8,100 points, penalized by Saint-Gobain (-4.3%) as well as by the banks with Société Générale (-2.3%), BNP Paribas (-1.8%) and Crédit Agricole (-1.2%).

Variations should remain limited today, in the absence of major political or economic events or new developments in the trade dossier, the main subject of tension at the moment.

The economic agenda will remain slim over the coming days, with the publication of the latest consumer price index (CPI) figures expected on Wall Street on Wednesday, followed by producer prices the next day.

The past week has not put an end to the outperformance of European equities relative to their US counterparts, but several factors suggest that their recent performance should be viewed with caution, warn analysts.

'This development does not reflect an outperformance of the European economy, but rather a change in sentiment regarding the economic outlook on both sides of the Atlantic', say AXA IM's teams.

"The appeal of the 'Trump trade' seems to be waning in the face of the growing negative effects of the new US administration's policies, making some traditional aspects of 'old Europe' probably more attractive", says the asset manager.

Other professionals believe that the recent rebound could begin to be threatened.

'Although we have held a positive view on European equities relative to US equities since early December, we now advise against increasing this position, after the strongest European outperformance in 10 years', add the strategists at J.Safra Sarasin's strategists.

'We still see some room for catching up in European small caps, which have not yet fully incorporated the recent improvement in European macroeconomic data', says the Swiss private bank.

At Lombard Odier, we also believe that some consolidation seems likely over the next few weeks.

With German equities looking overbought, the French stock market could outperform in the short term", stresses the Swiss bank.

On the statistics front, following a contraction of 1.5% in December 2024 (revised from an initial estimate of -2.4%), German industrial output in volume terms rebounded by 2% in January compared with the previous month, according to Destatis CVS-CJO data.

Meanwhile, Germany's trade surplus, according to Destatis seasonally and calendar adjusted data, contracted to 16 billion euros in January, compared with 20.7 billion the previous month.

While European bond markets last week suffered their worst week since early October 1998, the yield on the 10-year Bund eased to 2.81%, while the OAT for the same maturity fell to 3.48%.

On the US market, the 10-year Treasuries rate eased to 4.26%, two days ahead of the release of consumer prices.

Currencies are calm, allowing the euro to remain comfortably at $1.085 (+0.2%).

After last week's steep decline, oil prices are back on the rise, with Brent crude +0.3% ($70.6/barrel).

In French company news, Thales Alenia Space, a joint venture between Thales (67%) and Leonardo (33%), announces the signing of a contract to manufacture the JSAT-32 geostationary telecommunications satellite for SKY Perfect JSAT, Asia's largest satellite operator.

Safran Helicopter Engines announces that it has signed an exclusive partnership with Robinson Helicopter Company (RHC) to power the R88 helicopter.

Sanofi reports that positive results from the pivotal Phase II/III ADEPT study evaluating its Dupixent for the treatment of moderate to severe adult bullous pemphigoid were presented at the American Academy of Dermatology (AAD) 2025 Annual Meeting

Finally, Dassault Aviation reports that its Board of Directors has decided to reduce the company's capital by cancelling 198.527 of its own registered shares, representing 0.25% of its share capital.

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