The Paris Bourse ended the session with a gain of 0.91%, at 7455 points, with performances from URW (+3.3%), Teleperformance (+2.4%) and Saint-Gobain (+1.9%). Volumes remained low, however, with just under three billion euros traded since the opening.

According to S&P Global, growth in US private sector activity accelerated in January, with the composite PMI flash estimate coming in at 52.3, a seven-month high, after 50.9 the previous month.

"Expansion was supported by service providers, while manufacturers continued to observe a fall in production against a backdrop of intensifying supply problems", says S&P Global.

'While it's true that sellers are fretting over valuations in the technology sector, we think estimates for 2024 and 2025 will be revised upwards with the wave of AI investment about to hit the market', warns Dan Ives, analyst at Wedbush Securities.

In fact, for the past three full months, 100% of Wall Street's performance has been based on a dozen stocks, three of which have accounted for 80% of performance since January 1: an ultra-concentration unseen in 140 years.

Tesla and IBM results are expected after the market close tonight, before Intel's tomorrow.

The earnings season is currently in full swing, and according to the latest FactSet data, 62% of S&P 500 companies exceeded expectations, compared with a ten-year average of 74%.

There were also figures from Europe this morning: the HCOB composite PMI flash index of overall activity in the Eurozone came in at 47.9 in January, highlighting an eighth consecutive month of decline in the region's private business activity.

The index recovered from December 2023 (47.6) and signals the smallest decline in overall activity since July.

In France, the HCOB composite PMI index fell from 44.8 in December to 44.2 in January ('flash' estimate), posting a four-month low and underlining the sharp contraction in overall activity in the country.

On the bond front, the yield on 10-year Treasuries hovered around 4.15% (stable), while the 10-year German Bund, the benchmark for the region, settled at around 2.34% (-2 basis points) on the eve of the ECB's eagerly-awaited announcements.

On the oil markets, Brent crude gained 0.5% to $80.1 a barrel.
The euro rallied against the greenback, gaining 0.4% to around $1.09/E.

In French company news, Pierre & Vacances last night reported IFRS sales of €368.6 million for the 1st quarter of the 2023/2024 financial year, compared with €351.8 million a year earlier.

Interparfums reports sales growth of 13% to 798.5 million euros (+14.6% at constant exchange rates) for 2023, achieving 'another record year, in a dynamic market, particularly in the first part of the year'.

For the third quarter of 2023-24, Alstom reports sales up 2.6% to 4.33 billion euros (+4.6% organic), and orders up 5.8% to 5.45 billion (+6.4% organic).

Groupe Casino announces that it has reached agreements with Auchan Retail France and Groupement Les Mousquetaires for the sale of 288 stores (and associated service stations), based on an enterprise value of between 1.3 and 1.35 billion euros.

Airbus announces that the French defense procurement agency (Direction Générale de l'Armement - DGA) has ordered 42 new H145 helicopters on behalf of the French Ministry of the Interior. Deliveries are scheduled to start in 2024.

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