The Paris Bourse has radically reversed course, with the CAC40 moving from an initial +0.6% rise around 7,700 points to a decline of over 1.2% towards 7,560, before recovering to 7,600Pts (-0.8%)... with modest volumes (E1.5bn) but still up 20% on the June average. with modest volumes (E1.5 bn), but still up 20% on the June average.
The Euro-Stoxx50 fared slightly better (-0.5%), but now has only a 0.2% safety margin against the 4,900Pts support level.900Pts support.

Wall Street has just reopened on an indecisive note: the S&P500 is off by just -0.1%, the Nasdaq is up +0.2 to +0.3%... but the Dow Jones is tipping the scales with -0.4%, so red dominates across the Atlantic.

In view of the session's lighter economic agenda, the markets seem to be taking a break today before embarking on a much busier weekend.

On Friday, investors will be keeping a close eye on the release of the PCE price index, a measure of inflation particularly closely watched by the Fed.

Market operators will also be paying close attention to tomorrow's first televised debate between Joe Biden and Donald Trump in the run-up to November's presidential election.

In France, the high ratings of the RN and the Nouveau Front Populaire (the gap is narrowing according to the latest polls) ahead of Sunday's first round of parliamentary elections continue to fuel a certain climate of nervousness.

Elections are always a point of attention, but in the absence of any new information or changes in the polls, they have little immediate effect on the market", explains Christopher Dembik, Investment Strategy Advisor at Pictet AM.

Meanwhile, this morning investors learned of an erosion in household confidence in France in June.

At 89, the confidence indicator, calculated from household responses (mostly received before the 10th of the month), fell by one point and remains well below its long-term average (100 between January 1987 and December 2023).

On the bond front, a slight deterioration in the spread (+2.3pts) between the yield on French OATs and German Bunds was observed: at +74 basis points, with a 10-year Bund at 2.4360% (+2.5pts) and OATs of the same maturity at 3.175% (+4.8pts).

On the U.S. market, the yield on 10-year Treasuries edged up to 4.305% (+6.8pts).

On the energy front, crude oil prices remain on an uptrend as we await this afternoon's release of figures from the US Energy Information Agency (EIA).

Brent North Sea crude is up 0.5% to $85.4 a barrel, while WTI is up 0.4% to $81.1 on the NYMEX.
The dollar, boosted by its sharply higher yield, gained a further 0.3% against the euro, which retreated to 1.0675 and returned to test its lows since June 15.

In French company news, bioMérieux announced on Wednesday that it had obtained special authorization and a "CLIA" waiver from the US FDA for its latest test to detect the most common respiratory viruses, including influenza, and strep throat.

Atos announces that it has received a revised global financial restructuring proposal from its bondholders' representative committee (SteerCo), taking into account the decision by Onepoint, Butler Industries and Econocom to withdraw from discussions on June 25, 2024.

Finally, Schneider Electric announces the reference price and initial conversion/exchange ratio of its bonds convertible into and/or exchangeable for new and/or existing shares (OCEANEs) due 2031, and the results of the redemption of its OCEANEs due 2026.


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