The Paris Bourse halved its gains, but was still up +0.7% at 7,528, compared with 1.5% this morning (and a high of 7,584).
The index continues to be driven by Teleperformance, which gained over 8%, ahead of Legrand (+6%) and Airbus (+5.5%).
The Euro-Stoxx50 posted a similar performance (+0.7% to 4,875), while Wall Street reopened higher, albeit less sharply than expected.

The S&P500 gained +1.2%, but the Dow Jones was already in the red, while the Nasdaq-100 jumped +2% and reduced its monthly loss from -5% to -3%.

The S&P500 ended July virtually unchanged, while the Dow Jones gained +4%: it's easy to see what kind of sector rotation (from tech to banks and autos) is keeping Wall Street hovering within 2% of its peaks (less than 1.5% for the Dow).

A figure was published in the early afternoon in the US concerning job creation in the private sector: according to ADP, 122,000 jobs were created in July, a figure below expectations, with a consensus of around 160.000 new jobs

The human resources firm points out that wage growth slowed to 4.8% year-on-year in July, a deceleration it attributes to the Fed's efforts to counteract inflation.
If inflation ever picks up again, it won't be because of labor", warns Nela Richardson, ADP's chief economist.

The NFP expected on Friday should be around +160,000 new jobs, compared with 206,000 in June.
The main 'monetary' event of the day will take place after the close of the European markets, with the publication of the Fed's monetary policy statement at 8:00 p.m., following 2 days of debate.

The central bank is not expected to change its key rates or make any spectacular announcements, but investors will be watching for signs of further rate cuts, given that inflation in the USA is now approaching its 2% target.

'Jay Powell is expected (...) to confirm the high probability of a rate cut in the near future.) confirm the high probability of the start of a monetary easing cycle in September, which has already been confirmed by the market", predicts Christopher Dembik, Investment Strategy Advisor at Pictet AM.

According to the CME Group's FedWatch barometer, the possibility of a 25 basis point rate cut in September is now estimated at over 87%.

While awaiting the Fed's verdict, the Bank of Japan overnight raised its key rate to 0.25%, continuing the process of normalizing its monetary policy after years of ultra-accommodative approach.

For Chris Weston, head of research at Pepperstone, this decision should be interpreted as a 'sign of confidence and a message that the economy is now in a sufficiently solid situation'.
Canada had done the opposite the day before, cutting its key rate by -0.25% for the second time this summer.

In China, the purchasing managers' index (PMI) for the non-manufacturing sector fell to 50.2 in July, compared with 50.5 in June, which could call for further measures to support activity on Beijing's part.

In Europe, the latest inflation figures for the eurozone thwarted expectations of a deceleration in price rises over the past two years.

Expected to fall from 2.5% to 2.4% year-on-year, CPI instead rose from +0.1% to +2.6%, and core inflation held steady at +2.9% (vs. 2.8% expected).
The bond markets - paradoxically - digested these figures well, with our OATs easing by -4.3pts to 4.098%, Bunds by -3.8pts to 2.3030%, and Italian BTPs by -4.5pts to 3.656%.

On the currency markets, the euro climbed +0.32%t above 1.0845 against the dollar.

Oil prices - hitherto unaffected by renewed tension in the Middle East - rallied ahead of the release of weekly US crude inventories this afternoon. A barrel of Brent crude is now trading for $80.7 (+2%).

In French company news, Teleperformance last night reported sales of €5076m for the first half of 2024, up 28.2% on a reported basis (+1.7% pro forma). Adjusted net income was ME432, up 25.9%, with net free cash flow of ME448 (+45%).

For its part, Legrand this morning reported net income (group share) down 11.3% to ME577.6 for the first six months of 2024, with adjusted operating margin before acquisitions down 1.4 points to 20.8% of sales.

Danone reports recurring EPS up 2.6% to 1.80 euros for the first six months of 2024, with recurring operating margin improving by 45 basis points to nearly 12.7%, driven by a sharp rise in operating margin.

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