The Paris Bourse is set to follow Wall Street's lead on Tuesday, although the gains are likely to be limited as the day's trading gets underway, with a host of indicators and results.

At around 8:15 a.m., the future contract on the CAC 40 index - which has now switched to the February timeframe - was up 13.5 points at 7055.5, heralding a favorable start to the session.

Investors should be wary of taking too many risks, however, ahead of the morning's release of the eurozone's 'flash' PMI indices, which are expected to fuel further debate on the state of the European economy.

While the general trend remains favourable for equities, concerns remain as to the strength of growth and the possibility of a recession in the months ahead.

While the environment remains difficult due to the inflationary shock and the tightening of monetary conditions, the decline in energy prices and the end of China's zero-covid policy could restore a little hope to European companies.

Under these conditions, PMIs in Europe, as in the United States, should signal a slight rebound in economic activity in January.

Graphically, the Paris market is looking for a foothold on the symbolic 7000-point threshold, with initial short-term targets remaining at 7050 and 7105 points.

From this point of view, technical analysts expect the next few sessions to be decisive in providing a further sign of what the trend might be.

"The indices are approaching important technical levels which, if breached, could signal a possible end to the downtrend", stresses Philippe de Gouville, CEO and co-founder of fintech Ismo.

Wall Street had benefited yesterday from a wind of optimism at the start of the quarterly earnings season and from an indicator suggesting that the Fed might be less aggressive in its monetary tightening.

At the final bell, the Dow Jones was up nearly 0.8% and the Nasdaq Composite climbed 2%.

The ball of earnings releases will continue in the United States today with announcements from 3M, GE, Halliburton, Johnson & Johnson, Travelers and Verizon.

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