The Paris Bourse ended the first day of the week with a gain of 0.33%, at 7551 points, driven by Publicis (+2.6%), Sanofi (+1.9%) and Worldline (+1.5%).

Investors are optimistic ahead of the 'end-of-year rally', despite the dose of uncertainty surrounding the forthcoming meetings of the US Federal Reserve (on 12/13) and the European Central Bank (on 12/14).

The major central banks recently ended their rate hike cycle, but their more accommodating approach does not seem sufficient in the eyes of the markets, which are now anticipating rapid rate cuts, convinced that Jerome Powell or Christine Lagarde are the unfailing allies of holders of "risky" assets.

Last Friday's publication of better-than-expected employment figures for November, however, confirmed the scenario of a "soft landing" for the US economy, making monetary easing less urgent.

In Europe, an imminent rate cut is expected as the economy flirts with recession.

Against this backdrop, "markets believe that the first rate cuts could take place as early as March, and that the ECB could make as many as six 0.25% rate cuts in 2024", notes Alexandre Baradez, Head of Market Analysis at IG France.

For the strategist, these expectations are probably too aggressive, given that core inflation in the eurozone is currently hovering around 3.6%, still a long way from the 2% target set by the central bank.

Beyond central bank announcements, the autumn 'rally' will be tested by key economic indicators, including the latest US inflation and retail sales figures.

In Europe, the preliminary PMI indexes for December - due on Friday - will be used to assess the seriousness of the recessionary threat on the Old Continent.
In the meantime, it's all quiet on the bond front, with Bunds and OATs stuck at Friday's levels (2.268% and 2.82%), while T-Bonds are up 2.3Pt at 4.270%.

Brent crude is down 0.3% at around $75.4 a barrel. The euro lost 0.1% against the greenback, to $1.074/euro. Lastly, gold was down 1% at $1,982 an ounce.

In company news, Alstom announced this weekend the inauguration of Citadis Dualis tram-trains on line T12 of the Île-de-France Mobilités network, which since yesterday links two major Essonne hubs, Évry-Courcouronnes and Massy-Palaiseau.

Arkema announces that it has signed a 20-year contract with EDF Renouvelables for the supply of 20 GWh/year of electricity from solar energy, a partnership that will begin in 2026 and cover 70% of the electricity consumption of Bostik's eight sites in France.

Saint-Gobain announces that it has signed an available line of credit of four billion euros maturing in December 2028, including two one-year extension options, which replaces two available lines of 2.5 and 1.5 billion maturing in December 2024.

Finally, Diagnos, a specialist in retinal analysis, announced on Monday that it had signed an exclusive distribution agreement with EssilorLuxottica in Canada. The two groups plan to collaborate by offering optometrists early detection solutions for eye problems based on AI developed by Diagnos.

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