The Paris stock market (+0.7%) is siding with the general feeling that the CPI published at 2:30 p.m. is in line with the FED's "pivot" scenario this autumn.

The CPI - one of the most eagerly awaited US stats in 1 month - came out perfectly in line with forecasts: consumer prices slowed to +4% annualized (+0.1% sequential) and core inflation (excluding volatile items) slowed to 5.3%, as expected.

Trading volumes remain skeletal, with 1.4 billion euros exchanged in 8 hours of trading (while the CAC40 rose from 7,308 this morning to 7,245 at lunchtime, before crossing the 7,300 mark again, representing an intraday variation of over 1.6%).
Wall Street is undoubtedly playing a driving role, with a larger-than-expected gain: the Dow Jones is up 0.5%, the S&P500 and the Nasdaq +0.6% to 13.540 (in the wake of Tesla's unprecedented 13th session of gains).

The CAC40 owes its positive score to gains by Teleperformance (+4.4%), Saint Gobain (+3%) and Legrand (+2.2%).

This morning, investors took note of Germany's annual inflation rate.
This came in at +6.1% in May 2023, marking a further slowdown following rates of +7.2% in April and +7.4% in March.

The ZEW indicator of economic sentiment in Germany came out mixed: it rose slightly in 'overall' terms in June to stand at -8.5 points, 2.2 points higher than in May, but a more detailed reading shows that 'experts do not expect the economic situation to improve in the second half of the year'.

Export-oriented sectors, in particular, are expected to perform rather poorly due to the weakness of the global economy", explains ZEW President Achim Wambach.

While the assessment of the outlook is recovering slightly, the assessment of Germany's current economic situation is falling sharply: the corresponding index has dropped by 21.7 points and now stands at -56.5 points.

Markets hoping that the day's figures would shed light on the choices made by the US Federal Reserve or the ECB are left wanting more... and bond markets, which had been doing rather well since this morning, are looking a little grey after having incorporated the scenario of a 'status quo' on US rates and a 25Pts hike in key ECB rates.

The yield on 10-year US Treasuries, down -9pts to 3.68%, is now up +1pt to 3.68%.

Ten-year German Bunds, which had been easing from -3.5pts to 2.346%, are now up +4pts to 2.422%, while OATs have moved from -4pts to 2.872% to +3pts to 2.942%. Italian BTPs will end unchanged at 4.052%, compared with -6.5pts to 3.985%.
The dollar is down -0.45% at 1.0815E.
In French company news, Teleperformance announced the deployment of artificial intelligence (AI) tools on the ServiceNow cloud platform, a leader in digital workflow management, to improve the employee experience, increase productivity and transform its operations.

Saint-Gobain announced that it has entered into a definitive agreement to acquire Building Products of Canada Corp, for 925 million euros.

Finally, Thales has signed a binding memorandum of understanding to acquire 100% of the Australian group Tesserent Ltd, at a price valuing its equity at 176 million Australian dollars, or around 107 million euros.



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