The Paris stock market is trading at equilibrium, around 7,640 points, despite the dynamic performance of the automotive sector, with Renault and Stellantis up 2.6%.

Valuation levels are still very attractive (especially relative to US equities)", says Laura Corrieras, equity portfolio manager at Indosuez Wealth Management.

The analyst warns, however, that a number of uncertainties are likely to persist, particularly with regard to economic and geopolitical issues.

Given the more cyclical nature of the European equity market, should macroeconomic indicators be weaker than anticipated, or the Goldilocks scenario be called into question, the region could underperform other markets", she warns.

"But it's too early to act on this scenario", adds the manager.

While earnings releases remain the focus of attention, investors will also be watching the day's economic indicators, in the hope that they will confirm the 'soft landing' scenario.

On the statistics front, German industrial production fell much more sharply than expected in December, according to official statistics published on Wednesday, confirming the current slump in Europe's leading economy.

Activity in the German industrial sector fell by 1.6% compared with November, whereas economists were expecting a more limited 0.5% decline. With the exception of August, when the indicator remained stable, this was the sixth consecutive month of decline.

On the bond market, yields on US Treasuries continued their decline of the previous day, while the timetable for future rate cuts remains highly uncertain.

The yield on 10-year Treasuries fell back to 4.09%, and benchmark yields in the eurozone followed suit, with the 10-year German Bund dropping to 2.27%.

The oil market stabilized ahead of the release of weekly US crude inventories in the afternoon. The price of Brent is stable at around $78.7 a barrel.

In news from French companies, TotalEnergies reports adjusted net income for fiscal year 2023 down 36% to $23.2 billion, or $9.40 per share (-33%), and adjusted EBITDA down 30% to $50 billion.

In addition, TotalEnergies and its partners announced the start-up of production from the Akpo West field on block PML2 (in which the French group is operator with a 24% interest), located 135 kilometers off the coast of Nigeria.

Amundi reports a 3.9% increase in adjusted net income to €1.22 billion for 2023, reflecting a 2.1% increase in adjusted net revenues to €3.2 billion, with adjusted expenses rising at the same rate to €1.71 billion.

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