The Paris Bourse ended a three-day winning streak, which had allowed it to recover 1.42%. However, the CAC 40 lost only 0.02%, closing at 8,179.50 points. Elsewhere in Europe, indices also ended the day cautiously, except for Amsterdam's AEX, which dropped 1.54%. Frankfurt's DAX 40 slipped just 0.09%, finishing at 24,775.35 points.

For the Paris market, the day was dominated by a flurry of corporate earnings releases and analyst recommendations.
Publicis, for example, finished at the bottom of the CAC 40, tumbling 9.24% to €78.40, returning to levels not seen since mid-August 2025. The communications group actually posted very strong annual results, but its outlook was coolly received by investors. Publicis is targeting organic growth of 4 to 5% in 2026, after +5.6% in 2025, signaling a slowdown in its growth rate.

Also in the red, Renault stumbled 4.17%, hit by a downgrade from Morgan Stanley, which shifted its rating from market weight to underweight and cut its price target from €47 to €33.

Meanwhile, Amundi posted a fourth consecutive gain, rising 1.75% to reach record highs. The asset management firm reported very strong annual results, including record annual inflows and a €500 million share buyback program.

In Paris, the trend was also weighed down by declines in most luxury stocks, which account for a significant portion of the index (about 28% of the CAC 40, including L'Oréal). HSBC notably lowered its price target for LVMH from €775 to €700, with the stock losing 1.73% today.
In the same sector in Europe, Denmark's Pandora plunged 9.25%. The stock was hit by profit-taking after soaring 14.56% in two sessions, alongside a sharp drop in silver prices, which have since rebounded.

On the Amsterdam stock exchange, Akzo Nobel slumped 3.88%. The paints and coatings specialist delivered annual results that were broadly in line with expectations, but its outlook disappointed.

Geopolitical News Largely Positive

If investors were able to focus on corporate earnings, it was largely thanks to the absence of negative geopolitical developments.

On the contrary, the news was rather encouraging, notably with the announcement of a trade agreement between the United States and India, which includes a reduction in tariffs on Indian goods entering the U.S. from 50% to 18%.

Moreover, tensions between Tehran and Washington appear to be easing, even though oil prices are slightly higher—mainly a modest rebound after a roughly 5% drop over two sessions.

The only minor cloud on the horizon is the ongoing "shutdown," which was supposed to last only until this Tuesday but remains in effect. However, a vote is expected in the House of Representatives that could resolve the situation during the day.

For example, the release of the JOLTS report on new job openings by the U.S. Bureau of Labor Statistics could not take place.

On the data front in Europe, investors took note of preliminary French inflation figures. The consumer price index is estimated to have fallen by 0.3% in January in France, whereas analysts had expected only a 0.1% drop. Year-on-year, inflation would be +0.3%, compared to expectations of +0.6%. According to INSEE, this slowdown is due to a seasonal decline in manufactured goods prices, notably thanks to sales.

On the currency market, the euro is up against the greenback (+0.18%), trading at $1.1812.

Currency traders appear to be holding steady ahead of the European Central Bank meeting, which will announce its rate decision on Thursday. A status quo is widely expected, but as usual, all eyes will be on President Christine Lagarde's press conference.