The Paris Bourse (+0.2% to 7,550) is about to complete a 5th week of gains (+0.3 to +0.4% since April 14), with a new record high of 7,561pts in the process: the higher prices rise, the more trading volumes contract (which is the antithesis of a classic bullish scenario, as the influx of buyers boosts activity).

The "luxury" sector continues to impose itself as the hegemonic theme (33% of CAC capitalization, 40% of volumes) with L'Oréal at a new zenith (+1.9% at 437E), Essilor +7% (equalling its record of 190E in mid-November 2021).
This "three witches" day, marked by the expiry of futures contracts and options, continues the 9% gains made since March 18, with the annual gain peaking at 16.5E.

The Euro-Stoxx50 is not to be outdone with +0.1%, climbing 5pts from its record closing level of 4,400pts.
Wall Street has just reopened slightly higher with +0.10% on the Dow Jones, stability on the S&P500... and the Nasdaq is alone on the downside with -0.1% (to sum up, the differences are 'the thickness of the line').
In the absence of any major US economic indicators, it is once again corporate earnings releases that are driving the stock market.

Among the groups that published their accounts before the opening, Procter & Gamble opened up 3% after raising its growth forecasts for 2023 due to the strength of its sales prices: an admission that the company does not hesitate to charge consumers a high price for 1st necessity products.... buyers have no choice but to accept the price rises.

SLB, the former Schlumberger, on the other hand, is being shunned despite a solid start to the year, with first-quarter sales up 30% and EPS up 85%.

This morning, investors took note of the PMI figures for the euro zone. The HCOB flash composite PMI index of overall activity in the zone recovered from 53.7 in March to 54.4 this month, signalling strong growth in the region's private sector activity, at its fastest pace for 11 months.
France, on the other hand, saw activity fall from 47.3 to 45.5, the lowest in 3 years.

According to the surveyors, this upturn was underpinned by revived demand and accompanied by the strongest employment growth in almost a year, while inflationary pressures eased further.

'Less positively, growth has become increasingly unbalanced, driven only by the services sector, while manufacturing output has fallen back into contraction territory on the back of a plunge in demand for goods', they qualify.

While the analysts envisage few negative technical signals in the short term, the markets seem to be looking for elements likely to take them to a new level, in this case major resistances on the E-Stoxx50 (a zenith), the S&P and the Nasdaq (annual highs).

"The panorama is not entirely free of bearish risks", say the economists at Oddo BHF.
For some weeks now, banking stress has been mounting, pointing to a further tightening of credit conditions", add the analysts.
"Monetary policy is restrictive, with no hope of easing in the short term", reiterates Oddo BHF.
On the bond front, yields are easing, with +2.5pts on our OATs (to 2.992%) and +3pts on Bunds (to 2.474%).
Across the Atlantic, yields are easing symmetrically -4pts to 3.505%.
Gilts will end the week close to their lows with +2pts at 3.78%.

Beyond macroeconomic concerns, the stock market continues to be driven by numerous corporate earnings releases.

In stock news, EssilorLuxottica (+7%) yesterday announced consolidated sales of 6,151 million euros for the first quarter of 2023, up 8.6% at constant exchange rates on sales for the first quarter of 2022 (+9.7% at current exchange rates).

Tarkett also reported last night Q1 sales of €698.4 million, up +2.0% on Q1 2022, or -0.9% on an organic basis.

Fnac Darty announced on Thursday Q1 2023 sales of €1,781 million, stable on a reported and like-for-like basis compared with Q1 2022.

Lastly, engineering company GTT (Gaztransport & Technigaz) this morning posted first-quarter 2023 sales up 17.2% to €79.9 million, including new-build sales up 19% to €73.5 million.

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