The Paris stock market lost almost 0.5% around 8015 points, penalized in particular by the downturn in the luxury goods sector, with -1.5% for LVMH and Kering and -1.1% for Hermes, while Renault continued its upward trend with a gain of over 2%, giving the Losange nearly 10% in five sessions.

At 2:00 p.m., European investors will be keeping a close eye on the first German inflation figures for the month just ended, which are likely to have suffered from an unfavorable basis for comparison.

"It is possible that the annual inflation rate will pick up by a few tenths this month", warn economists at private bank Oddo BHF.

They point out that German inflation slowed during the same period last year due to a drop in public transport prices.

Bank of America analysts are expecting the core consumer price index (CPI) to rise by 2.3% year-on-year, after 2.2% in April.

Between now and the end of the week, market participants will get further indications of price trends in Europe with Spanish figures tomorrow, followed by data for France and the eurozone on Friday.

All these figures will be decisive in confirming the hypothesis of a rate cut by the European Central Bank (ECB) as early as next week.

Markets will also be on the lookout on Friday for PCE inflation data in the USA, the Federal Reserve's favorite indicator of price dynamics, expected to fall slightly.

While awaiting the release of this crucial inflation data, European markets could benefit from the rise of technology stocks in the wake of the heavyweight that is now Nvidia.

Thanks to the continued spectacular rise of the manufacturer of AI-dedicated processors (still +7% last night), the Nasdaq set new all-time highs on Tuesday.

Adding a further $195 billion in capitalization yesterday, the equivalent of TotalEnergies, Nvidia - now valued at some $2,850 billion - is hot on the heels of Apple and its $2,935 billion capitalization.

This move confirms that fears of persistent inflation and high rates for an extended period remain for the time being more than offset by hopes surrounding AI.

Against this backdrop, the surge in bond yields is going relatively unnoticed, although the yield on ten-year US Treasuries is rising well above 4.54%.

In other French company news, Exail Technologies announces that it has signed an initial partnership with Safran for WIZY-WAP, its latest-generation on-board communications equipment, a partnership which should eventually generate annual sales of several million euros.

Safran also announces that its innovations have been recognized by a Crystal Cabin Award in the 'Cabin systems' category for the 'CUBE' developed by Safran Cabin.

Bouygues Telecom states that it has been informed by SFR and La Poste of the differences between them concerning its planned acquisition of the virtual operator La Poste Telecom, currently jointly owned by La Poste and SFR.

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