On Tuesday, the Paris Bourse is set to continue the timid rebound it began the previous day in the wake of Wall Street's recovery, which was driven by a hunt for bargains despite concerns about interest rates.

At around 8.15am, the future contract on the CAC 40 index - for delivery at the end of January - gained 22 points to 7481.5, suggesting that the opening could be in positive territory.

After losing up to 0.6% and breaking the 7,400-point barrier mid-morning yesterday, the Paris market regained some color in the second half of the session, ending with a 0.4% gain at 7,450 points.

The trend benefited greatly from the rebound on Wall Street, which posted its best session of the year with a 2.2% rise for the Nasdaq Composite, driven mainly by the strength of semiconductor manufacturers.

Tuesday's trading could be tinged with more caution, ahead of US inflation figures (Thursday) and the approach of the quarterly earnings season across the Atlantic.

"We're in for another wait-and-see session on the stock market ahead of what promises to be a more eventful weekend", predicts Christopher Dembik, Investment Strategy Advisor at Pictet AM.

We can expect risk aversion to take a slight upturn at the end of the week", he predicts, pointing out that only the next meeting of the Federal Reserve will provide some visibility on the evolution of monetary policy.

Only minor economic indicators (German industrial production, eurozone unemployment, US trade balance) are on today's agenda.

Oil prices continued to fall sharply, with Brent crude losing a further 0.1% to $76.1 a barrel. The contraction reached 0.2% for US WTI, which traded at $70.6.

Such a fall relieves inflationary expectations, which were heightened last week by the detour of tankers and sea freight from Asia via southern Africa, as access to the Suez Canal via the Red Sea is proving unsafe.

This easing has led to an improvement in bond markets, which is less evident this morning: US T-Bond yields are back above the critical 4% threshold. In Europe, the German equivalent is up to 2.13%.

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