Paris Stock Exchange experienced a notable rise of 2.28% to 7447 points, driven by strong performances from major companies. Wall Street also saw gains, with the Dow Jones up 0.7% and the S&P 500 rising 1.2%. Economic indicators show a slight improvement in the eurozone’s PMI index, while U.S. industrial orders fell 0.4%. Notable corporate news includes Unibail-Rodamco-Westfield selling a stake in a shopping center and ArcelorMittal halting steel production in South Africa.
Paris Stock Exchange Sees Impressive Gains
The Paris Stock Exchange wrapped up its first trading session of the week with a remarkable surge of 2.28%, reaching 7447 points. This rally was largely fueled by significant performances from STMicro, which rose by 7.8%, Dassault Systèmes with a 5.3% increase, and Schneider Electric, showing a gain of 4.7%.
Wall Street Follows Suit
Meanwhile, Wall Street also experienced positive momentum, with the Dow Jones climbing by 0.7%, the S&P 500 increasing by 1.2%, and the Nasdaq enjoying a notable rise of 1.8%.
This strong market performance appears to be linked to a report from the Washington Post, suggesting that Donald Trump may reconsider his strategy of imposing universal tariffs, opting instead to focus on ‘crucial imports.’
On the economic front, the HCOB composite PMI index for the eurozone indicated a slight improvement, rising from 48.3 in November to 49.6 in December, although it remained below the crucial 50 mark, highlighting a continued, albeit slowing, contraction in private sector activity.
In France, the HCOB composite PMI index stood at 47.5 for December. While this marks an increase from November’s ten-month low, it signifies a contraction in private sector activity for the fourth consecutive month.
Additionally, U.S. industrial orders fell by 0.4% in November, reflecting ongoing sluggishness in the manufacturing sector. This marks their fourth decline in six months, as reported by the Department of Commerce.
Looking ahead, the week will be highlighted by the release of the minutes from the U.S. Federal Reserve’s monetary policy meeting on Wednesday. These minutes could shed light on the rationale behind recent decisions and provide hints regarding potential rate cuts in the near future.
It’s worth noting that U.S. stock markets will be closed tomorrow in observance of a national day of mourning for former President Jimmy Carter, who passed away on December 29 at the age of 100.
In the bond market, the outlook remains mixed, with French OATs dipping by 2.5% to 3.27%, while Bunds rose by 2.8 points to 2.453%. Italian BTPs also saw a decrease, easing by 1.5 points to 3.5819%. The spread between OATs and Bunds has narrowed to +82 points, whereas U.S. T-Bonds have resumed their upward trend, gaining 2.5 points to reach 4.623%.
The recent shift in tariff expectations has led to a 0.8% drop in the Dollar against the Euro, which now stands at 1.04$/E.
In corporate news, Unibail-Rodamco-Westfield (URW) has announced the sale of a 15% stake in the Westfield Forum des Halles shopping center in Paris to CDC Investissement Immobilier, netting a sale price of 235 million euros.
Fleury Michon confirmed the finalization of the sale of its meal tray activities to Kumo, following the lifting of suspensive conditions that were part of the agreement established last November.
Additionally, ArcelorMittal revealed its decision to halt long steel production in South Africa due to unfavorable conditions.
Lastly, Saft, a subsidiary of TotalEnergies specializing in battery technology, has signed a contract with Enchanted Tools for the supply of rechargeable battery blocks destined for the latest generation of Mirokaï robots.