The Paris Bourse continued the rebound it began late in yesterday's session, gaining 0.5% to 7310 points, helped by LVMH (+1.7%), Stellantis (+1.6%) and Hermès (+1.5%).

Above all, the market seems to be benefiting from a certain return to optimism following recent data showing a decline in inflation in the USA.

Thus, following yesterday's reassuring producer price figures in the USA (up 0.1% in July), the US consumer price index rose by 2.9% in July 2024 compared with the same month in 2023, i.e. the lowest rate of inflation since March 2021, and in line with Jefferies' expectations.

Against this backdrop, Mahmoud Alkudsi, senior market analyst at ADSS, believes that this data 'could give the Federal Reserve greater confidence to accelerate its pace of key rate cuts'.

Inflation appears to be cooling from the high levels seen earlier in the year", he continues.

"With a 50 basis point rate cut now more likely in September, the Fed could end the year on an interest rate cut of at least one percentage point", adds the analyst.

According to the strategists, every figure indicating that the economy is not heading for recession, but rather for a soft landing, will be a calming factor for the markets in the weeks ahead.

On Wall Street, the Dow Jones, S&P 500 and Nasdaq Composite are currently static at their equilibrium points, testifying to a return to calm after the VIX's recent surges.

Still on the statistics front, this morning the markets took note of a 2.3% year-on-year rise in consumer prices in France in July, a slight increase on June's +2.2% annual rate, according to Insee, which thus confirms its provisional estimate for last month.

In the UK, the consumer price index (CPI) rose by 2.2% in the 12 months to July 2024, an annual rate up 0.2 points on the previous month, according to the Office for National Statistics.

Copyright (c) 2024 CercleFinance.com. All rights reserved.