The Paris Bourse maintains a lead of +0.15% to +0.2% (with 8,170 as the pivot).
The CAC40 started the session well, setting a new record (8,229) before settling back to 8,140 points... then rebounding in the wake of Wall Street, which smashed new records.

Investors welcomed the Federal Reserve's announcements (perhaps with a positive over-interpretation: the bond markets don't have the same "rose-colored glasses" reading), which confirmed yesterday that it was still planning three rate cuts this year (compared with 7 to 8 expected by the end of 2023).
The Fed left rates unchanged, as expected, on Wednesday evening, but its statement hinted that the slowdown in inflation - albeit uneven - could enable it to ease monetary policy in the months ahead.

The Bank's eagerly-awaited new interest rate projections, known as dot plots, continue to show three rate cuts in 2024, followed by three further reductions in the cost of money in 2025.

According to the CME's FedWatch barometer, traders now rate the probability of a June rate cut at nearly 72%, compared with 60% before the Fed meeting.

In this euphoric climate, Wall Street set a series of new records on the 3 main indices (Dow Jones gained +0.8% to 39.860, the S&P500 peaked at 5,260, the Nasdaq gained +1% to 16,530 and the Nasdaq-100 soared +1.1% to 18,458).

Investors have just been treated to a flurry of economic indicators: the latest concerns sales of existing homes in the USA.
According to the National Association of Realtors (NAR), sales rose by 9.5% between January and February, reaching an annualized and seasonally adjusted figure of 4.38 million.
The median sale price reached $384,500, up 5.7% year-on-year, and the stock of unsold existing homes rose by 5.9% to 1.07 million at the end of February, or 2.9 months at the current rate of absorption.
Growth in the US private sector was slightly less dynamic in March, despite the good form of the manufacturing industry.
According to S&P Global's latest PMI survey of managers, the 'flash' composite index - which measures activity in services and industry - eased to 52.2 this month, from 52.5 last month.
In services, the PMI fell to 51.7, from 52.3 in February, but recovered to 52.5 in manufacturing, from 52.2 last month, reaching an almost two-year high.

On the other hand, the index of leading indicators in the US rebounded in February, thanks in particular to a healthy stock market, announced the Conference Board on Thursday.

This leading indicator, which is supposed to foreshadow the general trend in US economic activity over the coming months, rose by 0.1% last month, following a decline of 0.4% in January (compared with -0.2% expected).
Despite this positive surprise, the ConfBoard says it sees a number of factors likely to weigh on growth, which it sees slowing in the second and third quarters due to the impact of high interest rates on consumer spending.

Almost 24% of companies reported an increase in overall activity this month, while 21% reported decreases; 52% reported no change.
The new orders index returned to positive territory for the first time since October, rising from -5.2 in February to 5.4 in March. The current shipments index rose by 1 point to 11.4 in March, its highest level since August 2022.

Overall, companies continued to report a decline in employment. The employment index rose by 1 point to -9.6 in March, its 11th negative figure in the last 13 months.

Like its US counterpart, the BoE also opted for a 'status quo' at lunchtime, but the market is anticipating the beginning of a shift in its monetary policy in the second half of the year.

In Europe, the morning was dominated by the publication of the latest PMI activity indicators for the eurozone: the HCOB flash composite PMI index for overall activity in the eurozone stood at 49.9 in March, compared with 49.2 in February, signalling a near-stabilization of activity levels in March.

With lower energy prices and the prospect of an ECB rate cut in June, there is every reason to expect sentiment to improve," predict Oddo BHF's economists.

On the bond market, US government bonds reacted very timidly to the Fed's statement: after -1Pt the previous day, the '10yr' rallied +1Pt to 4.2800%.
It's a little more positive in Europe with -2.5Pts on OATs at 2.85% and -3Pts on Bunds at 2.4050%.

The greenback fully recovers the -0.6% lost the previous day and climbs towards 1.0860 against the euro.
The ounce of gold crosses the $2.200 (then settling down towards 2,180) and the ounce of silver ricocheted below $25.7 to fall back towards $24.9 (-0.5%).

On the stock front, investors are hoping that the stock market debut of the social media company Reddit, scheduled for the afternoon ($6.5 billion in anticipated 'valo'), will confirm the sparkling form currently displayed by the technology sector.



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