The Paris Bourse is likely to take a break from its upward trend on Tuesday, after having benefited the previous day from perceived favorable developments on the growth and inflation fronts.

At around 8:15 a.m., the 'future' contract on the CAC 40 index - August delivery - was down 4.5 points at 7509 points, heralding an indecisive start to the session.

Yesterday, the Paris market had finished slightly up (+0.3%) following the publication of indicators showing better-than-expected growth in the euro zone in the second quarter, as well as easing inflation.

It seems that the markets are looking at a perfect outcome, with inflation falling sharply, growth remaining solid and unemployment remaining low", explains Pierre Debru, Head of Quantitative Research and Multi-Asset Solutions at WisdomTree.

As a sign of investors' optimism about the economy, all sectors have been performing well over the past month, although technology and telecoms stocks in particular remain the most popular.

'Potential opportunities exist in some of the laggards, particularly in the defensive or less expensive aspects of the market', stresses Pierre Debru, at WisdomTree.

The results season is in full swing, with many companies outperforming expectations, particularly in the US.

Several US heavyweights such as Caterpillar, Merck and Pfizer are due to unveil their accounts today before Wall Street opens, while AMD and Starbucks are due to report tonight after the close.

On the Old Continent, HSBC, bp, Diageo and Daimer presented their performances this morning.

Another supportive factor is the return to calm on the bond market, where the yield on the 10-year German Bund fell by one basis point to 2.49%.

On the other side of the Atlantic, the yield on ten-year Treasuries is also easing, to close to 3.95%, which is supporting the bullish trend on equity markets.

However, the latter remains close to its annual high of over 4%, reached at the beginning of July.

At the same time, safe-haven currencies such as the yen and the Swiss franc are continuing to fall against the dollar and the euro, once again confirming the renewed appetite for risk.

On the economic front, investors are awaiting the publication of the final July manufacturing PMI figures for the eurozone, which should confirm the sector's difficulties.

Copyright (c) 2023 CercleFinance.com. All rights reserved.