The Paris stockmarket is expected to extend its recent rebound on Wednesday morning, still supported by tentative hopes of a return to peace in Ukraine and by the increasing likelihood of a Fed rate cut in the US next month.

Around 8:15 a.m., the December delivery futures contract on the CAC 40 index was up 34 points at 8,084 points, pointing to a positive opening in the wake of the recovery that began last Thursday.

After trading around its breakeven point for much of the day yesterday, the Paris market picked up speed in the afternoon, ultimately gaining 0.8% and ending the session above 8,000 points, a threshold it had broken a week ago, closing at 8,025 points.

The same upward move swept across European markets, with the DAX advancing 0.9% by the close of trading and the Euro STOXX adding 0.8%.

Investors reacted positively to reports of progress on the 19-point peace plan put forward by the US, which could satisfy both Kyiv and Moscow.

After a hesitant start to the session, Wall Street also continued its rebound yesterday, helped by mixed economic indicators that reinforced expectations of a further rate cut by the Federal Reserve on December 10, a scenario now seen as credible by nearly 83% of traders, according to CME's FedWatch tool.

In a reassuring sign, the S&P 500 climbed back above its 50-day moving average at 6,750 points, which had been breached a week ago, gaining more than 0.9% to 6,766 points.

With risk appetite returning, stress is easing and the VIX volatility index - often dubbed the fear gauge - is down 10% toward 18.50, a drop back below the 20-point mark that significantly lightens the mood.

"Once again this year, sellers find themselves on the wrong side of the markets," notes Michael Brown, strategist at Pepperstone.

"The US economy remains solid, earnings growth is robust, the trading climate is improving and monetary policy is still accommodative: a set of factors that is clearly pushing risk assets higher," the analyst continues.

"Add to that a very favorable seasonal pattern, the flows driven by fear of missing out (FOMO) on this year-end rally, and the resumption of share buybacks, and you get an environment that would be hard - if not unwise - to bet against for the time being," he concludes.

While investors will be watching US durable goods orders at 2:30 p.m., trading volumes are likely to remain thin and initiatives limited on the eve of Thanksgiving, a public holiday during which Wall Street will be closed.