The Paris Bourse got the week - and the month of June - off to a good start, rising +0.5% to 8,025 points, away from the somewhat tricky 7,910/7.920Pts (and volumes were a little higher than in previous days, signalling the return of a little buying flow.
The CAC40 was buoyed by the performances of Carrefour (+3.2%), STMicro and Teleperformance (+2.3%).

After a lacklustre month of May (+0.1%), the Paris market is hoping to get back on track and return to its recent record highs (located within 3% of current levels), even if the gaps could remain relatively limited before the major events of the next few days.

Indeed, investors are likely to adopt a wait-and-see attitude ahead of what promises to be a busy week for both monetary policy and economic indicators.

Despite last week's better-than-expected inflation figures, there is little doubt that the ECB will cut rates on Thursday to support the recovery in eurozone growth.

The most interesting point, however, will concern the trajectory of its rates after June, as the re-acceleration of inflation is likely to fuel debate about a possible ECB "pause" in July.

After last week's bout of tension, the yield on the German 10-year Bund is down sharply, at around 2.58%, compared with over 2.65% on Friday evening.

Our French OATs improved even more sharply, down 8 points to 3.058%, despite S&P's decision to downgrade France's credit rating: a downgrade that was either long anticipated by the markets (and priced in), or completely ignored as France should already be several notches lower, according to Patrick Arthus.

In the United States, bond yields eased by -10pts: the -5pt improvement became more radical after the publication of the US manufacturing PMI: according to S&P Global, the leading activity index came out at 51.3 for the past month, compared with 50.0 in the final data for April.
While customer demand improved over the month, it remained lacklustre according to respondents", says S&P Global, seeing only a marginal rise in new orders, but a solid pace of expansion in production.
The picture is quite different with the ISM: activity in the US manufacturing sector deepened its contraction in May (economists were expecting a slowdown).
According to the monthly survey by the Institute for Supply Management (ISM) published on Monday, the index came in at 48.7 last month, compared with 49.2 in April, while the consensus was for an index averaging around 49.8.
The new orders sub-index remained in contraction territory, at 45.4 in May compared with 49.1 in April, while the production sub-index fell to 50.2 from 51.3 last month.
The prices paid sub-index fell to 42.4, from 45.4 in April, while the employment sub-index rose to 51.1, from 48.6 the previous month.

Another major event this week, the US employment report - expected on Friday - should confirm that the US job market remains solid.
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On the energy market, oil prices fell -3.5% to $78.8 in London after OPEC+ decided to extend its production cut to support prices.
The ounce of gold remained unchanged at $2.330, despite the first 'deep' Ukrainian strikes on Russian territory following the green light given this weekend by NATO (from Washington and London, according to the Kiev authorities).

In French company news, Casino announced on Friday evening the sale of 90 stores to Groupement Les Mousquetaires and Auchan Retail France.

Atos reports that it has received two revised financial restructuring proposals, from EPEI in association with Attestor Limited on the one hand, and from a consortium comprising Onepoint, Butler Industries, Econocom and certain creditors on the other.

Airbus announces that a consortium of Japanese companies led by NTT Docomo and Space Compass, in collaboration with Mizuho Bank and the Development Bank of Japan, has committed to investing $100 million in AALTO HAPS.

Finally, PT Len Industri (Persero) and Thales signed an agreement on May 30, 2024 to create a joint venture (JV) aimed at enhancing Indonesia's defense capabilities by strengthening local industrial activities in the fields of manufacturing, engineering and services.

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