The Paris Bourse remains slightly down (-0.2% towards 7,200) in volumes that remain as anemic as ever (less than 1 billion euros in 6 and a half hours of trading), with the Euro-Stoxx50 down -0.3%: the US indices are almost in line, with the Dow Jones reopening down -0.2%, and the S&P500 down -0.3%.
Investors seem to be in a wait-and-see mode, awaiting the next element likely to push the market even higher, or on the contrary lead to an episode of consolation.

Many strategists are pointing out that the bullish winds that have recently supported 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 on 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 rate cuts as early as 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 by half a basis point at 2.38%, while our OATs are down by the same margin at 2.929%.
In the energy market, benchmark crude oil contracts fell sharply (-2%) 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 2% to $75.3 a barrel, while US light crude (West Texas Intermediate, WTI) shed 1.6% to $71.2.


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