The Paris Bourse ended the session down by a limited 0.13%, at 7,299 points, penalized in particular by the sharp decline in banking stocks, with -1.9% for Société Générale, -2% for Credit Agricole and -2.2% for BNP Paribas.

This morning, investors took note of various statistics, such as the business climate in Germany. This improved in February, a sign that Europe's leading economy should avoid the worst this winter, according to the index published by the Ifo institute.

Its business climate indicator, based on a survey of 9.000 companies, rose to 91.1 points this month from 90.1 in January, in line with consensus expectations.

While the current conditions component fell to 93.9 from 94.1 the previous month, the expectations component rose from 86.4 to 88.5 in February.

This slight improvement in the index - calculated on the basis of responses from business leaders in the main market sectors - is mainly due to the improvement in the general and personal outlook for business in the services sector.

Earlier, investors had received confirmation that the German inflation rate, measured by the year-on-year change in the consumer price index (CPI), stood at +8.7% in January 2023, according to Destatis (a figure identical to the preliminary estimate of February 9).

The main market mover, interest rates, is therefore not affecting the Paris index, which is resisting the spectacular rise in bond yields.
On the Treasuries market, the ten-year yield exceeded the 3.95% threshold last night, setting a new high since last November: a slight easing is taking place with -5pts to 3.900%.

Whereas at the end of January, the Fed's final rate was estimated at 4.9% in June, the markets are now expecting a final Fed rate of over 5.3% in July... and 25% of operators are now aiming for 5.60% (i.e. 4 additional rate hikes between now and summer).

These forecasts are leading to a general resumption of pressure on rates, both short and long, with French 10-year OATs settling above 3% (-2Pts at 3.001%) and German Bunds clinging to 2.500% (-2Pts at 2.518%).

The dollar continues to climb, reaching $1.0630/EUR. Finally, Brent crude oil is down 1.8%, now trading at $81.2/barrel.

In company news, Korian (-19.9% at 7.64E) last night reported sales of 4,534 ME for fiscal year 2022, up 6.2% organically on the previous year. EBITDA came to 607 ME, up 1.6%, while net income (group share) stood at 52 million euros, down 54% on the same period twelve months earlier.

This morning, Danone reported a 3.6% increase in recurring EPS to 3.43 euros for 2022, despite a 1.5 point drop in recurring operating margin to 12.2%, with 'reinvestment in brands, product superiority, organizations and skills'.

Saint-Gobain announces that it has reached an agreement to acquire UP Twiga Fiberglass Ltd, India's market leader in glass wool insulation, with two production plants near Delhi and Mumbai.

Stellantis gains on the stock market this Wednesday following the presentation of 'record' results for fiscal year 2022 and the announcement of a €1.5 billion share buyback program.

Safran Electronics & Defense announces the creation of a joint venture, Vision for Optronics & Navigation, with UAE-based International Golden Group to support optronics and navigation equipment in the defense and high-tech sectors.


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