The Paris Bourse (+0.55% to 7,555) resumes its inexorable advance with 4 days to go before the '4 Witches' session, with a new all-time record for the CAC40 'GR' (at 22,866ts).
For the CAC 'PX1', a record close is on the cards in the next few hours (just 0.2% away), while annual or all-time records continue to fall for the DAX (at 16,762) and the Euro-Stoxx50 (+0.25%, around 4,535ts).762) or the Euro-Stoxx50 (+0.25%, around 4,535 points).
Investors are showing unshakeable confidence in the continuation of the 'end-of-year rally', despite meetings of the US Federal Reserve (on 12/13) and then the European Central Bank (ECB on 12/14).

The major central banks recently ended their rate hike cycle, but their more accommodative approach does not seem sufficient in the eyes of the markets, which are now calling for rapid rate cuts.

Friday's publication of better-than-expected employment figures for November confirmed the scenario of a "soft landing" for the US economy, relieving some of the pressure on its shoulders.

Wall Street has been applauding the emergence of a 'Goldilocks' scenario for the past 6 weeks, and records are also falling for the Dow Jones (36,635), while the S&P500 equals its July 17 high of 4,607Pts... a closing record is likely if the initial good mood holds until 10pm.

In Europe, indices are matching or beating the S&P500: an imminent rate cut is expected as the European Central Bank (ECB) is urged to do more in the face of an economy that is undeniably flirting with recession.

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 underlying inflation in the eurozone is currently hovering around 3.6%, still far from the 2% target set by the central bank.

Nor does the Bank of England, whose announcements are expected on Thursday as is the case for the ECB, seem in any great hurry to join the 'dove' camp.

With central banks seemingly unwilling to go along with current market forecasts, the return to reality could prove complicated for investors already in euphoric mode.

In addition to the central bank announcements, the autumn rally will be put to the test by a number of key economic indicators, including the latest inflation and retail sales figures in the USA.

In Europe, the preliminary PMI indices for December - due on Friday - will help assess the seriousness of the recessionary threat on the Old Continent.
In the meantime, it's business as usual for bonds, with OATs and Bunds frozen at Friday's levels, and T-Bonds up 1.5Pt at 4.270%.

In French 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 solar-generated electricity, 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 a four-billion-euro line of credit 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.


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