Paris Stock Exchange rose by 0.66% to 7906 points, driven by Dassault Systèmes’ 8.9% gain after strong results and AI plans. In the U.S., Wall Street indices also increased. Optimism in France persists despite budget concerns and trade war fears. Mexico secured a grace period at the U.S. border, and tariffs against Canada were suspended. Economic data shows mixed results, while gold reached a record high. French companies, including Amundi and Publicis, reported solid earnings, with Dassault Systèmes announcing a partnership with Volkswagen and new AI offerings.
Paris Stock Exchange Sees Positive Movement
The Paris Stock Exchange experienced a notable increase of 0.66%, reaching 7906 points, largely propelled by the impressive performance of Dassault Systèmes, which surged by 8.9% following the release of results that exceeded expectations and the announcement of various AI initiatives.
Wall Street and Global Markets React
Over in the United States, Wall Street is making gains with the Dow Jones rising by 0.2%, the S&P 500 up by 0.6%, and the Nasdaq climbing 1.2%. This uptick follows a remarkable 25% surge in Palantir’s stock after it reported results that surpassed forecasts by 10%.
In France, investors remain optimistic due to the lack of censorship risks from the Bayrou government, despite a budget that appears to benefit no one and a government at odds with the recent French elections in July. Nonetheless, concerns linger over the potential resurgence of a trade war between the USA and other global players, particularly regarding its implications for worldwide economic growth.
In a positive development, Mexico has successfully negotiated a one-month grace period by agreeing to deploy 10,000 personnel to secure the US border. Meanwhile, Washington has also suspended tariffs against Canada following Prime Minister Justin Trudeau’s announcement of reinforcements at the border to combat drug trafficking, particularly fentanyl, which has been causing significant issues across the Atlantic.
On another front, China declared its intention to implement retaliatory measures against new tariffs imposed by Donald Trump, which include taxing hydrocarbons and initiating an investigation into Google. However, a potentially favorable sign arises as Chinese President Xi Jinping is set to engage in discussions with his American counterpart, hinting at a possible softening of their respective stances.
“Despite lingering uncertainties, it appears that the American president is open to dialogue and tends to bark more than bite,” noted analysts from Danske Bank. This sentiment has positively impacted Asian stock markets, with the Tokyo Nikkei index rebounding by 0.7% and the Hang Seng index in Hong Kong soaring by 2.4%.
Chris Weston, head of research at Pepperstone, commented, “Traders seem to be growing weary of these trade disputes and would prefer a return to the previous focus on economic data, growth, and monetary policies, but we find ourselves back in this situation.”
On the economic front, US industrial orders fell by 0.9% in December, following a revised decline of 0.8% in November. Conversely, US industrial shipments saw a 0.6% increase in December. Additionally, with inventories rising by 0.4%, the inventory-to-shipment ratio slightly tightened from 1.47 to 1.46 month-on-month. The upcoming days promise a busy schedule of economic appointments, culminating in the US employment report for January on Friday.
This bustling agenda raises hopes for a scenario that could allow market fundamentals to regain their footing. Amid this uncertainty, gold, often considered a safe haven, has appreciated by 1.4%, reaching a new all-time high of $2840 an ounce. North Sea Brent crude also saw an increase of 0.8%, moving towards $76.1.
In the realm of French companies, Amundi reported a 13% growth in net income, reaching €1.38 billion for 2024, reflecting a robust average annual growth rate of 6.1% compared to the benchmark net income of 2021, surpassing its target of 5%. Publicis announced a 4.9% rise in current EPS to €7.30 for 2024, maintaining an operating margin rate of 18%, accompanied by a 6.6% growth in net revenue, nearing €14 billion (+5.8% organically).
BNP Paribas reported an 8.9% increase in EPS to €9.57 for the 2024 fiscal year, along with a slight rise in the cost of risk to €3 billion and a gross operating result that climbed 7.4% to over €18.6 billion. Dassault Systèmes revealed a 7% growth in EPS (+9% at constant exchange rates) to €1.28 for 2024, aligning with its target range of €1.27-€1.30, despite a minor decrease in non-IFRS operating margin to 31.9%.
In an exciting development, Dassault Systèmes announced a long-term partnership with Volkswagen Group, which has chosen the 3DEXPERIENCE cloud platform as its primary tool for engineering and manufacturing activities. Additionally, the company unveiled the launch of ‘3D UNIV+RSES’, an innovative offering that integrates several generative AI technologies at the core of global intellectual property lifecycle management (IPLM) for the benefit of its clientele.