The CAC40 is now up +1.7% at 7,340: this 4th session of gains erases the air pocket of last Thursday (-3%) and Wednesday 5th (-0.8%), and the index is at its highest since July 4th ('gap' below 7,369).
The euro-Stoxx50 is up +1.8% at 4,365, less than 1% from its quadruple peak below 4,400/4,408 of April 21, May 19, June 16 and 30.400/4.408 on April 21, May 19, June 16 and June 30.

On Wall Street, US indices unsurprisingly reopened in the green, with the Dow Jones at +0.8%, the S&P500 at +1% and the Nasdaq at +1.4% towards 13,950 (the best mark since April 5, 2022, and the 'gap' below 14,170Pts), while the Nasdaq-100 also reached a new annual high at 13,920Pts.

The early afternoon release of the US consumer price index (CPI) was a welcome surprise.
Indeed, US inflation continues to contract in both "headline" and "core" terms, and is now 250pts below the FED's key rate (expected to be 90% in 15 days' time).
The US consumer price index rose by just 3% in June compared with the same month in 2022 (when it was +9.1%), the lowest annual rate since March 2021, and slightly below economists' expectations (3.1%).
Still according to the Labor Department, core inflation (excluding energy at -16.7% and food at +5.7%), two traditionally volatile categories, stood at 4.8% last month, again 0.1% below the market's average expectations.

On a sequential basis, i.e. between May and June 2023, US consumer prices rose by 0.2% on both a gross basis and excluding energy and food products.
Among the most striking price declines over 1 year, diesel posted -36.6%, gasoline -26.5%, industrial gas -18.6E, used vehicles -5.2%.
Public transport prices rose the most (+8.2%), followed by meals delivered to the workplace (+7.7%).
In reality, 9 out of 14 sectors rose in June, with the impact of fuels (3 sectors) proving decisive.

Fed members due to speak this week are expected to be more positive about the trajectory of inflation, and 'may increasingly suggest that rate hikes should be over soon'.
In Europe, Spain's consumer price index (CPI) eased to +1.9% last month from +3.2% in May, according to the National Statistics Institute (Ine), which thus confirms its provisional estimate of the end of June (strong impact of the VAT cut on energy).
In "core" data (i.e. excluding food and energy), however, the slowdown in Spanish inflation is far less spectacular, with the annual inflation rate down from +6.1% to +5.9% month-on-month.

The inflation rate harmonized to European standards (IPCA) came out at +1.6% in June, down 1.3 percentage points on May, thus falling back below the 2% target set by the European Central Bank (ECB)... but here again, this reflects proactive fiscal strategies aimed at preserving household purchasing power.

Bond markets also greeted the CPI release with an almost uniform easing of -11 basis points on both sides of the Atlantic, with T-Bonds at 3.875% and OATs at 3.10%.
Bunds fell -10.5 points to 2.544%, Italian BTPs -15 points to 4.256%... and British Gilts only -9 points to 4.5750%.

The dollar is down -1% towards its annual low of 1.1125E, while oil is up a symmetrical +0.8% to $80.05 in London for Brent crude: WTI is also back above $76 on the NYME (+1.6%), as the driving season is in full swing in the USA, and air conditioning systems are running at full capacity, consuming more energy than heating in winter.

Among Parisian stocks, ST-Micro is the driving force with +5%, followed by Unibail with +3.6%, and Thales, which has entered into exclusive negotiations to acquire Cobham Aerospace Communications, a supplier of advanced cockpit communications systems.

Bolloré has concluded the contract for the sale of 100% of Bolloré Logistics to the CMA CGM Group, following the completion of information and consultation procedures, and the exercise by Bolloré of the offer to purchase received on May 8.

Euronext announces the launch of two new SBT indices, the Euronext Europe SBT 1.5° and the Euronext Eurozone SBT 1.5°, to 'meet the growing demand from investors and markets for sustainable investment tools'.

Air France-KLM announces the implementation of a reverse stock split of its share capital, through the allocation of one new ordinary share with a par value of 10 euros against 10 old shares with a par value of one euro.

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