1. The CAC40 is cheap.

France has finally adopted the budget, and unsurprisingly, investors have been avoiding France.
According to Bank of America’s European fund manager survey published last month, France has been the least preferred equity market by far over the past four months.
JPMorgan strategists led by Mislav Matejka note that French stocks have traded weaker in relative terms for a while, with even banks lagging behind. It’s a pattern they see potentially changing in 2026. “We think one should use any weakness to buy.”

2. Indian stocks jumped 5% after reaching trade deal with the US.

With supportive fiscal and monetary policies, recovering domestic demand and broad-based sectoral growth, corporate earnings are set to rebound. Consensus forecast MSCI India earnings to grow by 13%/14% in 26/27, respectively.

India’s valuation premium to EM has compressed significantly, and it now also trades at a discount to S&P 500.

3. US stock rotation hits tech giants as small caps rise on strong manufacturing data.

The manufacturing index came in at 52.6, much higher than the expected 47.9.
New orders rose to 57.1 vs 47.4, the highest level since Feb. 2022.
A reading above 50 signals expansion in U.S. manufacturing, indicating improving demand, production, and business confidence.

4. Legal software stocks plunge on AI disruption concerns.

Shares of professional publishers including Relx and Wolters Kluwer slide after Anthropic released an AI-powered productivity tool for companies’ in-house legal teams.
For the legal productivity plugin in particular, the tool can automate “contract review, NDA triage, compliance workflows, legal briefings, and templated responses,” according a description on the tool’s Github page.

5. How will OpenAI pay for its estimated $1.4 trillion of commitments, including those $300 billion to Oracle?

Oracle reported $523 billion of remaining performance obligations, which represent contracted sales not yet recognized as revenue. The figure, which is a closely watched footnote disclosure, was about nine times Oracle’s revenue for the previous four quarters, and included the $300 billion related to OpenAI.
The news that Nvidia is downsizing its commitment to OpenAI raises fresh questions about the likelihood that the $300 billion will come through.

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