After a brief foray above 7100 points in mid-afternoon, the Paris Bourse lost some ground towards the end of the day, but ended the session with a gain of 0.48%, at 7077 points, driven in particular by L'Oréal (+2.5%), StMicro (+2%) and Renault (+1.9%).

The CAC40 thus shrugged off the decline on Wall Street, where the Nasdaq and S&P500 lost 0.3%, while the Dow Jones fell by 1.1%.

Investors were able to take note of several economic indicators during the day. For example, manufacturing activity contracted sharply in the New York area, according to companies responding to the local Fed's Empire State survey in January, with the overall general business conditions index falling 22 points to -32.9.

Input price rises are slowing considerably, and sales price rises are also moderating. Looking ahead, companies expect little improvement in business conditions over the next six months.

After an initial salvo of results on Friday, the big US banks were in the spotlight again today, with Goldman Sachs and Morgan Stanley reporting a -69% and -41% drop in profits respectively.
This morning, the ZEW index of investor sentiment in Germany recovered by 40.2 points, moving back into positive territory - for the first time since February 2022 - to stand at +16.9 in January.

Overnight, investors learned that China's GDP had grown by just 3% in 2022 (over 40 years) due to the resurgence of the epidemic in the country. The population is shrinking for the 1st time in 601 years, with just over 9.5 million births but 10 million deaths.

On the bond front, the yield on our OATs fell by -11pts to 2.53%, Bunds by -11.5pts to 2.8% and Italian BTPs by -13.5pts to 3.88%.

In company news, Technip Energies announces that it has won, in joint venture with Samsung Engineering and Tecnimont, a pre-construction services contract (PCSA) for the onshore infrastructure of the Hail & Ghasha gas development project in Abu Dhabi, United Arab Emirates.

Danone announces a global action plan to reduce methane emissions from its fresh milk supply chain by 30% in absolute terms by 2030, equivalent to 1.2 million tonnes of CO2 by that date.

Thales Alenia Space has signed a contract with Appworks, to supply Thailand with the MEOLUT Next solution for locating distress signals

The European Commission announces that it has authorized the creation of a joint venture between Stellantis and Hon Hai Precision Industry, a Taiwanese company. The joint venture will be headquartered in the Netherlands and will develop semiconductors for the automotive market.

Vinci reports that Vinci Energies has acquired Avanceon LLC, a Pennsylvania-based industrial controls and systems integration company in the USA.

Finally, Safran Helicopter Engines announced that it has signed a contract with Yellowhead Helicopters to support the Arriel engines powering its AS350 and H125 helicopter fleets.

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