The Paris Bourse is set to continue its decline on Tuesday morning, as it awaits US retail sales data due to be released in the early afternoon.

At around 8:15 a.m., the future contract on the CAC 40 index - July delivery - was down six points at 7608 points, pointing to a session start in the red.

Still under pressure due to the climate of political uncertainty in France, the Paris market had fallen back 1.2% yesterday and once again underperformed its European counterparts.

The trend was mainly weighed down by the hole in the air in the luxury goods sector, penalized by slower-than-expected growth in China - a market on which LVMH, Hermès and Kering are highly dependent - but above all by the poor results from Swatch and the warning issued by Burberry.

Investors are now awaiting US retail sales figures for June, which will fuel debates on the effects of inflation on US household consumption.

The consensus forecast is for a 0.2% month-on-month decline in retail sales, reflecting weaker consumer demand due to the recent upward movement in prices.

These new data could help to better assess the risk of a slowdown in growth in the second half of the year, and the extent of monetary easing to be expected from the Fed between now and the end of the year.

In Germany, the ZEW index - which measures investor sentiment - is expected to be weak, a sign that the country's economic context remains gloomy.

On the earnings front, the major US banking groups will remain in the spotlight on Tuesday, with the quarterly results of Bank of America and Morgan Stanley due at lunchtime.

The quarterly results season, which began last week and will intensify this week, could prompt investors to adopt a cautious stance as they await the releases of the major technology groups.

On the bond market, the yield on ten-year Treasuries continues to move, around 4.20%, at almost four-month lows.

The German 10-year is unchanged at 2.47%, while the 10-year OAT rate has stabilized at 3.11%, giving a spread that has contracted to 64 basis points.

On the currency markets, the euro weakened further against the greenback, falling below 1.0890, still trapped in its 1.06-1.09 range, two days ahead of the European Central Bank's (ECB) monetary policy announcements.

The oil market is consolidating after five consecutive weeks of gains, despite the increasingly serious prospect of a victory for Donald Trump, whose policies are favorable to the sector.

Brent crude is down 0.5% to $84.4 a barrel, and US light crude 0.6% to $81.4.

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