The Paris Bourse ended the session with a loss of 1.99%, at 7708 points. After the air pocket at the start of the week (-1.3% on Monday, then -1.3% on Tuesday), triggered by the shock of the European elections and the dissolution of the French parliament, the Paris index took a brief respite yesterday (+0.97%)... before slipping back into the red.

The index was penalized in particular by the sharp declines of Axa and Eurofins Scientific (-4% each), and Edenred (-3.9%). Of the 40 CAC stocks, 39 are in the red, with only Hermès holding up well with +0.5%.

After opening in record territory, the US indices are reversing course, with the S&P500 at -0.2% and the Dow Jones at -0.7%. The Nasdaq grabs 0.1%, in the wake of Broadcom (+13%) and Tesla (+4%).

It's worth wondering whether Wall Street isn't benefiting from the chaotic political situation in France and the downturn in European indices: investors are changing continents, but not abandoning equities. Money is only crossing the Atlantic again to invest on Wall Street, primarily in the Nasdaq titans.

Today's US figures only serve to reinforce US investors' confidence in disinflation: US producer prices (PPI) unexpectedly fell by -0.2% in May (to +2.2% year-on-year) due to lower energy prices, according to statistics released by the Labor Department on Thursday.

Economists were forecasting a 0.1% month-on-month rise (after +0.5% in April).

The 'core' index, which measures underlying pressure on producer prices (excluding food, energy and commercial services), was perfectly stable last month, following a gain of 0.5% in April, and stands at +3.2% over 12 months.

The Labor Department announced that 242,000 new US jobless claims were registered in the week to June 3, up 13,000 on the previous week.

The four-week moving average - more representative of the underlying trend - came in at 227,000, up by 4,750 on the previous week.

But these "encouraging" figures were hampered by Jerome Powell's comments, which dashed investors' hopes of monetary easing.

His new interest rate projections - the famous "dot plots" - now show only one rate cut in 2024, compared with three up to now.

Of the 19 members of the Monetary Policy Committee (FOMC), 4 expect no rate cuts this year, 7 expect one and 8 expect two.

"This FOMC does not really change the game (...) but is a little more hawkish than expected", comments Bastien Drut, head of strategy and economic research at CPRAM.

Powell is making an effort to decentralize Fed policy from its price stability mandate and to focus a little more on the labor market", adds the economist.

On the bond front, T-Bonds continue to ease in the wake of Tuesday's session (-1.7 basis points to 4.275%). In Europe, Bunds improved by -2.5pts to 2.51% and continue to gain ground against our OATs, which gained +3.5pts to 3.1900%, i.e. +68pts spread (vs. 49pts last Friday).

The session promises to be poor in terms of macroeconomic indicators on the Old Continent, but the publication of industrial production in the euro zone disappointed. In April, seasonally-adjusted industrial production fell by 0.1% in the eurozone and rose by 0.5% in the EU, compared with March, according to estimates from Eurostat, the European Union's statistical office.

Consumer prices in Spain, calculated on the basis of harmonized European standards, rose by 3.6% year-on-year in May, confirming an initial estimate provided at the end of last month.

The euro is relatively stable against the greenback, trading at $1.075 (+0.1%).

Brent crude oil remains stable at around $82.5 a barrel, while gold is down 0.5% at $2305/ounce.

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