The Paris Bourse is going nowhere, fluctuating for over 7 hours between +0.2% and -0.2% (around 7,200) in volumes that remain as anemic as ever (less than E1.15bn in 8 hours of trading). The Euro-Stoxx50 is down -0.1%, while the US indices (S&P500 and Nasdaq) are at a standstill, down no more than 0.1%, and the Dow Jones is at a complete standstill.
Investors seem to be taking a wait-and-see attitude, awaiting the next element likely to push the market even higher, or on the contrary, bring about a consolation episode.

Many strategists are pointing out that the tailwinds that have recently buoyed the indices are now turning: interest rates are rising, inflation is struggling to ease and the cost of capital is rising.

Meanwhile, German manufacturing orders fell by -0.4% (against expectations of stability in April), according to provisional results from Destatis.
Retail sales remained unchanged in the eurozone in April compared with the previous month, according to data published Tuesday by Eurostat. According to estimates by the European Union's statistics office, the volume of retail trade in non-food products rose by 0.5% month-on-month.

Laura Corrieras, equity portfolio manager at Indosuez Wealth Management, believes that 'a liquidity crisis could even be looming over the markets, with the risk of destabilization, not to mention the persistent uncertainties surrounding growth and keeping market participants on their toes'.

In addition, we see a clear dissonance between the Fed's no rate cut policy, the resilience of equity markets and bond market expectations - which include several rate cuts this year'

The yield on 10-year Treasuries edged down +3pts to 3.723%, despite the prospect of a status quo from the Fed at the end of next week's meeting.

On the Old Continent, yields are stagnating: the 10-year Bund, the eurozone's benchmark rate, is down one basis point at 2.384%, with the same spread on our OATs at 2.934%.
On the energy market, benchmark crude oil contracts are recovering a little after falling -2% in the morning on profit-taking, after having rebounded vigorously yesterday in reaction to OPEC's promise to cut production in order to support prices.

Brent crude lost just 0.2% to $76.4 a barrel, while US light crude (West Texas Intermediate, WTI) was perfectly balanced at $72, compared with $70.15 this morning.


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