January’s rally eased despite the strong Ifo index in Germany

A good indicator will not be enough to revive the bullish momentum of early January in Europe, above all because it reinforces the rhetoric of the ECB in favor of a restrictive policy. Investors are therefore limiting action in this data-laden macro and microeconomic period. Germany’s Ifo institute saw a 1.6-point rise in its business sentiment index to 90.2, reinforcing sentiment that Europe’s largest economy will be able to stave off a recession, but the current conditions component has slightly contracted.

The new progression of the Ifo index” confirms that the improvement in business sentiment that began in late 2022 has continued this year, but the decline in the current conditions component serves as a reminder that the economy is not out of the woods yet. We think that, at best, it will stagnate in the first half summarizes Franziska Palmas, Senior Economist Europe at Capital Economics. At the same time, the German economy is expected to grow by 0.2% this year in price-adjusted data, according to the government’s report released this morning and seen by Reuters. ” The situation at the start of the year is more favorable than estimated in the autumn projectionsthe report says, however, uncertainties remain about the German economy “, he specifies.

Halfway through the session, the Bedroom 40 it dropped by 0.28% to 7,030.91 points on a turnover of 665 million euros. The contracts future on American indices yields between 0.6% and 1.2%.

Microsoft throws a shiver

This expected decline on Wall Street is largely explained by Microsoft’s 2% decline in the New York forecourt. The world’s leading software company expects lower-than-expected sales for the current quarter, mainly due to lower growth expected in its Azure division, specializing in the “cloud”, as well as PCs. Boeing, IBM and Tesla are also due to disclose their quarterly accounts on Wednesday.

The Bank of Canada’s monetary decision will follow this afternoon. It is expected to raise its key policy rate by 25 basis points to 4.5%, after tightening by half a percentage point in December. This decision precedes those of the US Federal Reserve and the European Central Bank by a week.

Alstom withdraws despite its predictions

Altom returns 0.9% after earning up to 3%. The railway equipment manufacturer has however confirmed its forecast for the fiscal year ending in March 2023 and announced an 8% increase in reported revenues in the third quarter. In the period October-December it achieved a turnover of 4.2 billion euros, against the 3.92 billion euros of the previous year, with an increase of 8%.

BNP Paribas loses 1.2%. German authorities raided the bank’s premises in Frankfurt as part of an investigation into a multibillion-dollar tax fraud known as “cum-ex”, reports the Handelsblatt.

Vallourec grew by 2.8% following the announcement of a three-year contract with the Brazilian Petrobras for the supply of OCTG pipes.