The Paris Bourse was making slow progress before the publication of the US CPI (+0.6% towards 7,835), in an average volume of 1.12B€, but the rise accelerated with +1% towards 7,865Pts at 14H35.865Pts at 14:35.
The Euro-Stoxx50, which recovered 1%, symbolically regained 5,000Pts (5,010), and the DAX40 (also +1%) 18,530.

The CAC40 passed 7,800 without really convincing, while the break of 7.900 triggered a medium-term consolidation trend.

This morning, investors avoided overexposure ahead of inflation indicators (US consumer prices), which came in slightly below expectations in May (+3.3% vs. +3.4 expected), not forgetting the US Federal Reserve's announcements later this evening.

While it is virtually certain that the Fed will leave its monetary policy unchanged, investors are concerned about what it will say about the pace of future rate cuts.

The Fed's new projections suggest that there will be fewer rate cuts this year - two, compared with the three previously expected.

While the US economy is currently doing rather well, it is still subject to headwinds, particularly in terms of inflation.

The Fed's announcements are due at 8:00 p.m. (Paris time), followed by a press conference by Chairman Jerome Powell at 8:30 p.m.

In Europe, the session was punctuated by the publication of the latest German inflation figures: the consumer price index (CPI) - was +2.4% in May 2024 according to Destatis, up +0.2% (in April and March 2024, the Rate was +2.2%).

After two months of increases, British industrial production fell again in April. The Office for National Statistics (ONS) reported this morning that industrial production was down 0.9% on the previous month, while analysts at Bank of America were expecting a more limited fall of 0.4%.

Today's busy agenda should enable investors to refocus their attention on more 'economic' topics (rather than the European elections.
The major short movement seen yesterday lunchtime on OATs faded with the announcement by J.Bardella's announcement that the retirement law requiring people to work until the age of 64 would not necessarily be called into question.

The yield on French ten-year bonds eased sharply (-5.5 basis points), back to around 3.19%, but this did not enable it to narrow the gap with its German equivalent, which eased by -8.7 basis points to 2.533% (a spread of +64 basis points versus 49 basis points last Friday).

On the other side of the Atlantic, the bond market confirmed its upward trend before CPI, with the yield on 10-year Treasuries holding on to the previous day's gains at 4.39/4.40%.

Wall Street was poised to reopen on new record highs, having registered a new flurry of "absolute highs" last night... despite a majority of stocks and sectors declining, offset by Apple's surge (+7.2%), which saw its AI initiative hailed... 24 hours late.

Oil prices are back on the rise as we await the release of US crude inventories later this afternoon.

Brent crude is up 0.9% to $83, while West Texas Intermediate (WTI) is up 0.7% to nearly $79

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