The Paris stock market (+0.5%) has risen for the 11th time (out of 13) since January 2, making it one of the longest bull runs (cumulative gain of +9.5%) without a 0.5% retracement in history, and certainly the longest run at the start of a year since the Paris stock market began.
The CAC40, which broke through the 7.100 (to 7,112) had well anticipated the publication of a series of indicators confirming the trend towards slowing inflation, thanks to the clear downturn in energy prices.

According to the professionals, reaching the target level of 7,085 points could represent the culmination of an initial medium-term objective... but the rise continues inexorably.
The CAC40 'GR' reached 20,900, just 0.5% off its all-time high of January 5, 2022.

In the USA, overall producer price inflation slowed sharply to -0.5% in December 2022 compared with the previous month, but core inflation rose by 0.1% excluding food, energy and business services.
Over the last twelve months, producer prices rose by 6.2% on a reported basis and by 4.6% excluding food, energy and commercial services, after annual rates of 7.3% and 4.9% respectively in November.
US retail sales fell more than expected in December 2022, contracting by 1.1% after a 1% decline the previous month, according to the Commerce Department.

Excluding the automotive sector (vehicles, equipment and service stations), U.S. retail sales contracted by 0.7%.

In the U.K., a respite on energy prices should help to moderate inflation a little, which is nevertheless expected to remain in double digits.

Investors also took note of the final consumer price figures for the eurozone for December: the annual inflation rate stood at 9.2% in December 2022, compared with 10.1% in November, according to Eurostat, which thus confirms its flash estimate for the final month of last year.
The European Union's annual inflation rate stood at 10.4% in December 2022, compared with 11.1% the previous month, with the lowest rate observed in Spain (5.5%) and the highest in Hungary (25%).

These figures were very well received on the bond front, with our OATs easing by a further -10pts to 2.432%, Bunds by -10pts to 1.9880% and Spanish Bonos by -13pts to 2.937%, while Italian BTPs erased -17pts to 3.72%.
The U.S. economy also improved, with T-Bonds down 13.5pts to 3.400%.
The dollar fell back -0.5% to retrace its annual low, to 1.0870E.
Note a new bullish push on oil, with Brent crude at $87.3 in London (+0.7%).

In French company news, Renault Group announced its worldwide sales figures for 2022. They amount to 2,051,174 vehicles, down 5.9%.

Stellantis has signed an agreement with Terrafame to supply nickel sulfate for electric vehicle batteries.

BNP Paribas reports receipt of regulatory approvals for the finalization of the sale of its US subsidiary Bank of the West to BMO Financial Group, a transaction for which an agreement was announced in December 2021.

Lastly, Pierre & Vacances last night published first-quarter group sales of 390.7 ME, up 9.9% on the same period last year.

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