The Paris stock market barely flinched on the publication of one of the most eagerly awaited US stats in a month... which came out perfectly in line with forecasts: consumer prices slowed to +4% annualized (+0.1% sequentially) and core inflation (excluding volatile items) slowed to 5.3%, as expected.

The markets seem neither delighted (as we were hoping for 3.9%, for the sake of symbolism), nor disappointed by these widely-anticipated figures... and activity remains skeletal, with 950MnsE traded in 6 hours of trading.

The CAC40, which initially gained 0.8% to 7,808, fell back into the red at lunchtime, and is now up 0.3% (to 7,270), a gap comparable to the rise expected on Wall Street at 3:30 p.m. (the Nasdaq could gain 0.7%).

The CAC40 owes its positive score to the rise of Teleperformance (+3.4%), Saint Gobain (+2.3%) and Michelin (+2.2%).

This morning, investors learned of Germany's annual inflation rate. It came in at +6.1% in May 2023, marking a further slowdown following rates of +7.2% in April and +7.4% in March.
The ZEW indicator of economic sentiment in Germany rose slightly in June to -8.5 points, 2.2 points higher than in May, but shows that 'experts do not expect the economic situation to improve in the second half of the year'.

Export-oriented sectors, in particular, are expected to perform rather poorly due to the weakness of the global economy", explains ZEW President Achim Wambach.

While the assessment of the outlook is picking up a little, the assessment of Germany's current economic situation, on the other hand, is falling sharply: the corresponding index has dropped 21.7 points and currently stands at -56.5 points.

Markets hoping that today's figures would shed light on the choices made by the US Federal Reserve or the ECB remain on tenterhooks.

Bond markets also remain frozen, as there is nothing to call into question the scenario of a 'status quo' on US rates and a 25Pts hike in key ECB rates.

The yield on ten-year US Treasury bonds is down -5Pts at 3.716%.... just like this morning, just like at 2:29 p.m.

Ten-year German Bund yields are down -3.5pts to 2.346%, OATs are down -4pts to 2.872%, Italian BTPs are up -7.5pts to 3.985%.

In French company news, Teleperformance announced the deployment of artificial intelligence (AI) tools on the ServiceNow cloud platform, a leader in digital workflow management, to improve the employee experience, increase productivity and transform its operations.

Saint-Gobain announced that it has reached a definitive agreement to acquire Building Products of Canada Corp, for 925 million euros.

Finally, Thales announces the signature of a binding memorandum of understanding to acquire 100% of the Australian group Tesserent Ltd, at a price valuing its equity at 176 million Australian dollars, or around 107 million euros.



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