The Paris stock market seems to be following the same trajectory as yesterday, gaining some 0.6% around 7,295 points, driven in particular by Teleperformance (+2.4%), Saint Gobain (+2.3%) and Michelin (+2.2%).

This morning, investors took note of Germany's annual inflation rate. It 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 markets are now awaiting the US Federal Reserve's meeting from today to tomorrow, at the end of which it will announce its monetary policy decision, most likely a 'status quo' on rates.

The idea is to skip this meeting, but leave the flexibility to resume rate hikes in July if necessary", say Oddo BHF's economists.

US inflation figures, due to be published early this afternoon, could however revive fears of a resumption of Fed rate hikes.

Although the disinflation process now seems to be well underway across the Atlantic, for the time being it concerns manufactured goods, energy and food, but is struggling to materialize at the level of service prices.

Despite this, the inflation rate is expected to fall sharply in May, from 4.9% to 4.1% for the total index.

Bond markets began the week without much direction, although the yield on 10-year US Treasuries fell back to 3.76% pending Fed decisions.

The yield on the 10-year German Bund edged up to 2.38%, as expectations of a rate hike by the European Central Bank (ECB) on Thursday were recently confirmed.

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 reached 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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