The Paris Bourse fell back moderately, by -0.5%, while the Euro-Stoxx50 doubled (-1.1%) in the wake of ASML, Europe's leading capitalization, which plunged -8%, below 900E, wiping out all its gains since June 4.

The CAC40 fell back to 7540 points, penalized by the plunge of Téléperformance (-10%) and the decline of EssilorLuxottica (-4.5%), or Publicis (-1.6%).
The CAC40 continues to consolidate in volumes that remain anecdotal, if not insignificant, with less than 0.9 billion euros traded in over 6 hours of trading.
The session was marked by the publication of several figures: firstly, in the Eurozone, Eurostat confirmed its flash estimate for the end of June: the annual inflation rate in the Eurozone stood at 2.5% last month, down slightly from 2.6% in May, while that of the European Union fell from 2.7% to 2.6%.

The strongest contributions to the eurozone's annual inflation rate came from services (+1.84 percentage points, pp), followed by food, alcohol and tobacco (+0.48 pp), industrial goods excluding energy (+0.17 pp) and energy (+0.02 pp).

The lowest annual rates in the EU were observed in Finland (0.5%), Italy (0.9%) and Lithuania (1.0%), while the highest were recorded in Belgium (5.4%), Romania (5.3%), Spain and Hungary (both 3.6%е).

Across the Atlantic, the Commerce Department reported a 3% rebound in US housing starts in June compared with the previous month, to an annualized rate of 1,353,000, following a 4.6% fall in May (revised from an initial estimate of -5.5%).

U.S. housing permits - which are supposed to foreshadow future housing starts - rose by 3.4% to 1,446,000 last month. Finally, housing completions climbed 10.1% to 1,710,000.
US industrial production stats have yet to be released.
In the meantime, T-Bonds are marginally down after their fine session on Tuesday: +1.5 basis points to 4.1780%.
Our OATs stagnate at 3.0880%, Bunds also at 2.4350%, Italian BTPs pull back +2pts to 3.7300.

On the back of a sharp -0.4% fall in the dollar, the euro rises symmetrically to 1.0940 (and the $ Index falls -0.5% to 103.75, with the Swiss franc climbing +0.9%).
The ounce of gold continues to soar, setting a new all-time record at $2,480/Oz.

On Wall Street, the S&P500 is set to open slightly lower, but sector rotation could continue in favour of the Dow Jones (+1.8% on Tuesday evening, approaching the 41.000 point threshold) and the Russell-2000, which soared +3.6% (+11.5% in 5 sessions).

Economists are not expecting much from the ECB Governing Council meeting, which is expected to keep its key rates unchanged before the summer break.

The ECB should take time to check inflation trends before the next update of its outlook in September: we conclude that the ECB should not change its monetary policy before September", explains Patrick Barbe, head of bond investment at Neuberger Berman.

In company news, EssilorLuxottica announces the signing of an agreement to acquire an 80% stake in Heidelberg Engineering, a deal that will strengthen the Franco-Italian optics giant's presence in medical technologies.

Air Liquide reports that its innovative CO2 liquefaction technology, Cryocap LQ, has been selected by the city of Stockholm's energy supplier, to contribute to its bioenergy with carbon dioxide capture and storage (BECCS) project.

Finally, Pernod Ricard announces the signature of an agreement for the sale of its strategic international wine brands to Australian Wine Holdco Limited (AWL), a consortium of international institutional investors which owns Accolade Wines.

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