Paris Stock Exchange experienced a 0.69% rise, closing at 7474 points, driven by significant gains from key companies like Société Générale and Michelin. Positive investor sentiment followed the US CPI report, which showed a 2.9% annual increase. Despite mixed economic signals from the Empire State Manufacturing Survey, US indices saw notable growth, while bond yields fell. French inflation data remained stable at 1.3%. In corporate news, Esker and Nexans reported strong performances, with new projects announced by Voltalia.
Paris Stock Exchange Shines with Notable Gains
The Paris Stock Exchange wrapped up the trading session with a commendable increase of 0.69%, reaching 7474 points. This positive momentum was largely fueled by strong performances from major players like Société Générale, URW, and Michelin, each recording gains of approximately 3%.
Market Reactions to Economic Indicators
Investor sentiment was bolstered by the latest release of the US Consumer Price Index (CPI), which revealed a 2.9% rise in December 2024 compared to December 2023. This annual rate aligns with expectations and marks a slight increase of 0.2 points from November. When excluding the more volatile sectors of energy (-0.5%) and food (+2.5%), the underlying annual inflation rate settled at 3.2% last month, slightly below the consensus forecast from economists.
In addition, the Empire State Manufacturing Survey indicated a downturn in economic activity in New York for January, with the general economic conditions index dropping by fifteen points to -12.6. Although employment levels remained stable, there was a noted decline in the average workweek length, alongside an acceleration in both input and selling prices.
Despite these mixed signals, companies expressed optimism about improved conditions in the upcoming months. This positive outlook contributed to significant gains in US indices, with the Dow Jones rising by 1.4%, the S&P 500 by 1.5%, and the Nasdaq climbing by an impressive 2%.
On the bond market front, the 10-year US Treasury yield decreased from 4.79% to approximately 4.646%, while the equivalent Bund eased to 2.52% (-10 points) and the French OAT to 3.35% (-11 points). The OAT/Bund spread contracted to +83 points, reflecting sentiment that the Bayrou government is likely to avoid censure in the near future.
This morning, investors also received inflation data from France, showing a year-on-year increase of 1.3% in consumer prices for December 2024, a stable rate compared to November and in line with the preliminary estimates released by Insee last week. As the week progresses, markets are gearing up for a busy schedule filled with earnings reports and a packed macroeconomic agenda.
US banks kicked off the earnings season on a positive note with solid fourth-quarter results: Morgan Stanley and BlackRock saw increases of 3.8% to 6.5%, while Goldman Sachs, Citi, and Wells Fargo posted gains ranging from 4% to 5.2%. However, JPMorgan lagged slightly behind with just a 1% increase.
Investors are keenly awaiting insights into the strength of consumption and the broader economic outlook, particularly in light of Donald Trump’s initial political actions. In commodity news, Brent crude oil prices rebounded by 1.4%, reaching around $81.5 per barrel. Meanwhile, the euro weakened against the US dollar, trading at $1.027, down by 0.3%.
Among notable developments in the French corporate sector, Esker reported its most successful year to date, achieving a revenue of 205.3 million euros for the entire 2024 fiscal year, reflecting a 15% growth at constant exchange rates. Additionally, Nexans announced it has secured a contract for the LanWin2 project, valued at one billion euros, as part of a framework agreement with TenneT established in May 2023.
Voltalia has also commenced construction on the Los Venados solar project, boasting a total capacity of 19.7 megawatts in the Tolima region. This marks the group’s inaugural project in Colombia, with commissioning anticipated in the first quarter of 2026.
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