The Paris Bourse is likely to start on a positive note on Thursday morning, with investors welcoming the Federal Reserve's announcements yesterday that it still plans three rate cuts this year.

At around 8.15am, the 'future' contract on the CAC 40 index - April delivery - climbed 76.5 points to 8265.5 points, raising the prospect of new all-time highs at the opening.

The Fed left rates unchanged, as expected, on Wednesday evening, but its statement suggested that slowing inflation could allow it to ease monetary policy in the months ahead.

Its much-anticipated new interest rate projections, known as "dot plots", continue to show three rate cuts in 2024, followed by three further reductions in the cost of money in 2025.

This slightly dove-like tone reassured the market, which had feared that the US central bank would reduce its plans to two rate cuts by the end of the year.

In fine, this Fed committee has a 'dovish' tone, as the two weaker-than-expected inflation reports (January and February) did not lead FOMC members to abandon the disinflation narrative and go back on the key rate cuts that had been communicated in December", notes Bastien Drut, Head of Strategy and Economic Research at CPR AM.

This means that the Fed remains accommodative, say traders, who now rate the probability of a June rate cut at nearly 72%, compared with 60% before the Fed meeting, according to CME's FedWatch barometer.

In this climate of euphoria, Wall Street ended the day at its highest level ever, and ended the day on a flurry of all-time highs.

With the Fed's verdict now behind them, investors will have to prepare for a busy session this Thursday, with a series of economic indicators interspersed with announcements from the Bank of England (BoE).

Like its American counterpart, the BoE is also likely to opt for a 'status quo' at lunchtime, but the market is anticipating the beginning of a shift in its monetary policy during the second half of the year.

The morning will be dominated by the publication of the latest PMI activity indicators for the eurozone, with the hope that they will confirm that a slight upturn is on the horizon on the Old Continent.

"With the fall in energy prices and the prospect of an ECB rate cut in June, there is every reason to expect an improvement in sentiment", predict the economists at Oddo BHF.

Other indicators on today's menu in the US include jobless claims, Conference Board leading indicators, existing home sales and the Philadelphia Fed index.

On the bond market, US government bonds continued their downward trend in the wake of the Fed statement.

The yield on ten-year Treasuries fell back to 4.27%, while the greenback gave up 0.1% ground against the euro, which climbed back to around 1.0940 after the central bank's rather conciliatory tone.

On the stock front, investors are hoping that the stock market debut of social media company Reddit, scheduled for this afternoon, will confirm the sparkling form currently displayed by the technology sector.

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