On Wednesday morning, the Paris Bourse is set to continue the rebound begun the previous day, with a certain optimism prevailing following recent data showing a decline in US inflation.

At around 8:15 a.m., the 'future' contract on the CAC 40 index - end-of-month delivery - was up 49.5 points at 7328.5 points, heralding a green start to the session.

After spending most of the session hovering around its equilibrium point, the Paris market rallied slightly yesterday, gaining more than 0.3% to return to its intermediate support level of 7,275 points.

Still reeling from the sudden air pocket experienced in the second half of July, investors will be hoping for some respite today, with a number of economic events on the agenda.

Following yesterday's reassuring figures on producer prices in the USA, traders are awaiting the US consumer price index (CPI) for July at 2.30pm on Wednesday.

The core CPI excluding food and energy, the index most closely followed by the Federal Reserve, is expected to remain at 3.3% year-on-year, which should not prevent the Fed from cutting its key rates next month.

Given the concerns surrounding the possibility of the US economy slipping back into recession, markets are likely to turn their attention tomorrow to US retail sales figures, which could prove decisive for the markets.

According to strategists, any figure indicating that the economy is not heading for recession, but rather for a soft landing, will be a calming factor for the markets in the weeks ahead.

The results of US retail giant Walmart, due tomorrow, will be eagerly awaited in this respect, and could once again brighten the markets' horizon.

With this in mind, last week's widespread sell-off on Wall Street came to a halt yesterday, thanks to a number of cheap buybacks in technology stocks, particularly those linked to AI.

As a result, the Dow Jones gained more than 1%, the S&P 500 jumped around 1.7% and the Nasdaq Composite gained more than 2.4%.

While there is no sign that the volatility episode is over, the last few sessions have been much calmer, as illustrated by the fall in the VIX index, down to 18.1 yesterday after peaking at 59 ten days ago.

In Europe, too, market participants are hoping that the forthcoming economic indicators will help to ward off the prospect of a possible return to recession.

The day's indicators will therefore be closely watched, notably the latest second-quarter GDP and industrial production figures for the eurozone, as well as inflation data for the UK.

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