The CAC40 continues to oscillate between 0.1% and 0.15% in the red or green, around a pivot point of 7,980pts (zero performance in May, negative -1.5% over the past week).
The week's most eagerly-awaited figure, the US PCE index (and, incidentally, Eurozone inflation), proved to be a non-event, insofar as its publication led to barely measurable variations in stock market indices, and frankly marginal variations in bonds.

Wall Street, which had reopened in the green - for symbolic reasons - with its indices up by a handful of points, is now heading more sharply downwards, with the S&P500 down -0.4%: it is now down 1.3% for the week, but has gained more than 4% in May.
The Nasdaq, which opened at around 16,750, is now down -1.2% at 16,540, reducing its monthly gain to less than 6% from +7% on Thursday evening.
The Dow Jones is the only one to remain positive, with a gain of less than 0.1% to 38,150.
T-Bonds are also easing by a handful of basis points, with the 10-year at 4.50% vs. 4.554% on Thursday (the consensus for a 1st rate cut in September has been raised from 45% to 50%).

The PCE price index - the most closely watched by the Fed - showed annual inflation for April to be stable compared with March, at 2.7% gross and 2.8% core (or underlying excluding energy and food), in line with consensus.
The Commerce Department, which publishes these figures, also reported that US household spending rose by 0.2% in April compared with the previous month (+2.65%/1 year), while incomes rose by 0.3% (in line with expectations).

There were also inflation figures for Europe: France's provisional CPI inflation estimate for May was unchanged at +2.2%.
Investors also took note this morning of price trends in the eurozone as a whole: the CPI is estimated at 2.6% in May 2024, reflecting an acceleration in consumer price inflation after a rate of 2.4% the previous month, according to Eurostat's "flash estimate".

These data will not dispel any doubts that the ECB will skip its rate-cutting turn at next Thursday's ECB monetary policy meeting, especially as German inflation, unveiled on Wednesday, came in at a poor +2.4% overall and +3% underlying.

Capital Economics does not believe that the May rise will dissuade the ECB from cutting rates next week, given that it is due to temporary factors, but warns that a pause in July 'now seems more likely'.
However, Forex traders seem to be reacting more cautiously: the euro is back up +0.2% against the dollar at 1.0855.
The $-Index is down only -0.15% at 104.55, while the yen has fallen back to 157.2.

In Paris stock news, Renault Group announces the official launch of HORSE Powertrain Limited, its 50/50 joint venture with Chinese carmaker Geely, specializing in engines and transmissions.

Sanofi reports that the CHMP of the European Medicines Agency has adopted a positive opinion on the approval of its Dupixent in the EU as an add-on maintenance treatment for chronic obstructive pulmonary disease.

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