The Paris stock market is firmly back on track, led by LVMH (+2.2%), Europe's largest capitalization, which smashed a new all-time record (and dragged Kering in its wake).

The CAC40 gained more than 1.1%, around 6945 points, i.e. +7.1% in 7 sessions.
The Euro-Stoxx50 also gained more than 1%, topping the 4,100 mark, and Wall Street reopened higher with +0.6% on the S&P500 and 0.7% on the Nasdaq.

If investors had been more cautious yesterday, they were relieved by the fact that Fed Chairman Jerome Powell refrained from commenting on inflation, the recession or current monetary policy.

The latest inflation figures, due out tomorrow, may well reinforce their view that monetary policy will be more accommodating from 2023, accompanied by a "soft landing" for the economy.

Economists are hoping for a further slowdown in US inflation (towards 6.5 or 6.6%), which had reached 7.1% in November, its lowest level in almost a year.

Another date to keep an eye on: the big banks JPMorgan Chase, Bank of America, Citi and Wells Fargo will kick off the quarterly earnings season on Friday.

Earnings of companies listed on the S&P 500 index are expected to fall by 4.1% for the fourth quarter of 2022, according to FactSet estimates, and pleasant surprises could once again be a bullish factor.

Apart from US oil inventories, no major indicators are on today's agenda on Wednesday.
Awaiting the IEA's weekly figures, oil is up sharply in London (ICE) and on the NYMEX, gaining +2.5% to $81.5 and $76.7 respectively.
And the bond markets are not moved by this, as yields suddenly ease by -12pts on our OATs to 2.6780% and -11pts on Bunds to 2.191%, followed by -16pts on Italian BTPs to 4.05%.

In company news, LVMH (+2.2% to 773E) announced the appointment of Pietro Beccari, who has headed Christian Dior Couture since 2018, as CEO of Louis Vuitton, succeeding Michael Burke who will take up a new position reporting directly to the luxury group's CEO, Bernard Arnault.

Dassault Aviation announced yesterday that its Mérignac plant had delivered the Rafale B359 in F3R standard to the Direction Générale de l'Armement on December 29, 2022. This event marks the resumption of Rafale deliveries to France after a four-year interruption for budgetary reasons", says Dassault.

According to Les Echos, Airbus is in preliminary negotiations with Atos to acquire a stake of up to 29.9% in Evidian. The Orange group is also said to be interested, according to the daily.

Finally, yacht manufacturer Fountaine Pajot reports that its order book, covering both the 2022-23 financial year and a large part of the years to follow, enables it to forecast growth for 2022-23 of between +10% and +15%.


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