European stock markets ended the second trading session of the week on a positive note. After lagging for much of the day, the CAC 40 managed to reverse its fortunes, gaining 0.32% to close at 8,237 points. The EuroStoxx 50 advanced by 0.13% to 5,931 points. In Frankfurt, the DAX continued its strong start to the year, closing at a new all-time high of 24,910.36 points. The Stoxx Europe 600 index also achieved a record close. Among individual stocks, EssilorLuxottica, STMicroelectronics, and Valneva were particularly sought after.

In Europe, Next jumped 4.43% to 14,192 pence on the London Stock Exchange after raising, for the fifth time this fiscal year, its sales and earnings per share forecasts for 2025/2026 and 2026/2027. The British retail group delivered what Jefferies described as a "solid" performance during the Christmas period, prompting the bank to maintain its "Hold" recommendation on the stock. The Leicester-based company reported that its full-price sales rose by 11% over the nine weeks ending December 27 compared to the previous year, surpassing the annual forecast of 7%.

In Paris, Valneva (+11.20% to 4.19 euros) topped the SBF 120 index after a note from Stifel, which confirmed its "Buy" rating on the stock, accompanied by a slightly increased price target from 9.50 to 10 euros, representing an upside potential of 165.39% compared to Monday's close.

Nexans (-4.45% to 126.80 euros) suffered the second-largest decline in the SBF 120 after announcing a delay in the completion of the Great Sea Interconnector (GSI) subsea power link project between Greece and Cyprus. In a statement published this morning, the cable manufacturer said it is working closely with its client (IPTO, the Greek electricity transmission system operator) to review various options and develop an adjusted execution schedule.


Today's Macroeconomic Data

 In the eurozone, the Composite Purchasing Managers' Index (PMI), which covers both manufacturing and services, came in at 51.5 in December, down from 52.8 in November and below expectations of 51.9. The services PMI fell from 53.6 to 52.4, compared to a consensus of 52.6.

In Germany, the S&P Global Composite PMI, covering both manufacturing and services, was 51.3 in December, down from 52.4 in November and slightly below the expected 51.5. The services PMI slipped from 53.1 to 52.7, compared to a consensus of 52.6.

In France, the HCOB Composite PMI for overall activity fell to 50 in December, signaling stagnation in French private sector activity at the end of 2025 after the slight growth recorded in November (50.4).

In Germany, the consumer price index was stable in December, compared to an expected increase of 0.3%, following a 0.2% decline in November. On an annual basis, inflation rose by 1.8%, below the consensus forecast of 2% and down from 2.3% the previous month.

In the United States, the Composite PMI for December was 52.7, nearly in line with the consensus of 53. It stood at 54.2 in November. The Services PMI was 52.5, compared to an expected 52.9 and 54.1 in November, marking the slowest growth recorded in eight months (since April 2025).

At the close, the euro was down 0.21% at 1.1690 dollars.