The Paris Bourse is likely to open on a positive note on Monday morning, even if the pace of action is likely to be limited as it enters a busy week of monetary policy, corporate earnings and economic indicators.

At around 8:15 a.m., the future contract on the CAC 40 index - now traded on the February futures - was up 38 points at 7,432, suggesting a positive start to the week.

The Paris market lost ground last week (-1.4% on a weekly basis) following a sharp reversal in investors' expectations of monetary easing.

Given the growing uncertainties surrounding the monetary policy of the major central banks, market participants are likely to remain risk-averse in the days ahead.

The week promises to be a busy one on the economic front, culminating in the European Central Bank's (ECB) monetary policy meeting on Thursday, ahead of the Fed's meeting next week.

Given the statements made by its President, Christine Lagarde, last Wednesday in Davis, the Frankfurt-based institute is likely to resist market calls for a rate cut as early as March.

"Investors are likely to be disappointed", warns Christopher Dembik, Investment Strategy Advisor at Pictet AM.

In the very short term, it's not in the ECB's interest to reveal too much about the date of the first rate cut or the pace of the easing process", he adds.

"It's better to wait and see how financial conditions evolve between now and March and April", explains the analyst.

Given the questions surrounding the evolution of monetary policy in Europe and the United States, traders will be focusing on corporate results, which are set to multiply this week.

In particular, investors will be hoping that the releases of numerous technology heavyweights such as Netflix, Tesla, IBM and Intel will breathe new life into the market.

These announcements will be closely watched as Wall Street set new records on Friday evening, still buoyed by the good form of semiconductor and AI-related stocks.

Several European heavyweights are also due to publish their accounts over the coming days, including ASML, LVMH, Nokia, SAP and STMicroelectronics.

The week will also be punctuated by PMI activity indices for Europe, due on Wednesday, followed by the first estimate of fourth-quarter US growth, due on Thursday.

On the bond front, the upward trend in US Treasury yields continues, fueled by the prospect of slower-than-expected monetary policy easing.

At nearly 4.15%, the US ten-year yield is still trading at one-month highs, while its German equivalent, the Bund with the same maturity, is peaking at 2.34%.

The oil market remains torn between fears linked to tensions in the Red Sea, on the one hand, and hopes of an increase in demand with the recovery of growth in China, on the other.

After a favorable performance last week, Brent crude is consolidating this morning by 0.5% at $78.1, while US light crude (West Texas Intermediate, WTI) is down 0.4% at $73.1.

The euro was little changed, hovering around 1.09 against the dollar on a foreign exchange market devoid of catalysts pending ECB and Fed announcements, and where visibility remains low.

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