The Paris Bourse is consolidating by a small -0.5%, after six consecutive sessions of gains and gaining +7% in a single trading session (best start to a year in 40 years).
Graphically, the CAC40 index has broken out above a major resistance zone between 6775 and 6850 points, which points to a continuation of the bullish sequence towards 6950 points, says Kiplink.

Investors were a little more cautious after a member of the Fed said on Monday evening that the cost of money will reach at least 5% this year, but also for fear that Jerome Powell would confirm this statement during a speech on the independence of central banks at a symposium organized in Stockholm by the Riksbank, Sweden's central bank

But the Fed Chairman made no comment on inflation, the recession or current monetary policy.... and Wall Street can breathe a sigh of relief, as the 3 main indices are in the green.

The S&P500 climbed 0.1%, the Dow Jones +0.2%, but the Nasdaq lost its initial +0.6%.

Tuesday was devoid of economic statistics (wholesaler inventories rose by 1% in November 2022 on a sequential basis in the US, a minor figure) or major corporate results.
Investors seem to be struggling to find anything to push forward the New Year's rally, which ended up taking the CAC above the 6900-point threshold yesterday.
In addition, Asian markets slowed down this morning after rising sharply, and could soon enter a bull market, i.e. an increase of 20% since the low seen last October, thanks to the reopening of the Chinese economy.

On the interest rate front, consolidation is the order of the day, with OATs +8pts to 2.795%, Bunds +8pts to 2.29%... and BTPs tightening by 4pts to 4.203%.

US T-Bonds rise from 3.515 to 3.61%, but the Dollar remains weak at 1.0745E, stabilizing against the main currencies at 103.2, but remaining on a downward trend.

Copyright (c) 2023 CercleFinance.com. All rights reserved.