The Paris stock market has erased half of its losses posted before the reopening of Wall Street: the CAC has climbed from -0.3% to around -0.15%, and is now back above the 8,200 mark, within 0.5% of its all-time highs... and still without volume.
Only 900MnsE has been traded in 7 hours, and there has been no real "buying interest" for 6 sessions.
But we're witnessing a real funicular rise: it's not certain that the CAC40 will end up in the red: it could thus line up a 7th session of gains.
The Euro-Stoxx50 and DAX are losing just 0.2% and could go on to set new records... like the AEX, the Dutch index, which climbed +0.8% to 912: 7th record in a row.
Wall Street gets off to a cautious start this week, but on a positive note: US indices are up between +0.1% (Nasdaq) and +0.3% (Dow Jones), with the S&P500 gaining +0.2%... but with a rather unexpected upward surge in the 'VIX' (given the S&P's gains) of +6.6% to 13.7 from 12.55 on Friday (maximum risk appetite).
"Risk appetite is rising again across all markets with remarkable consistency, from equities to bonds, via credit and commodities", points out Florian Ielpo, at Lombard Odier.
After last week's sharp rebound (+3%), the Paris index and the Euro-Stoxx50 will be put to the test this week with a slew of economic indicators, starting with the latest US inflation figures.

U.S. equity markets - which have just posted three consecutive weeks of gains - are now within touching distance of their all-time highs.

While the speed and scale of these gains may give rise to fears of an imminent pullback, the market could well find fresh impetus if the CAC manages to sustainably climb above its major resistance level of 8250 points.

Up to now, the 8250-point threshold has represented an important management point for investors, synonymous with partial profit-taking, which has prevented them from rallying to the psychological 8500-point threshold.

The Paris market's ability to break above this key level will be tested over the next few days by a busy schedule of indicators, including retail sales and industrial production figures from across the Atlantic.

We recommend building portfolio positions according to all possible scenarios, but with a bias towards the prospect of rate cuts", stresses Angelo Kourkafas, strategist at Edward Jones.

Also on the week's agenda is a speech by Fed Chairman Jerome Powell at the annual conference of the Foreign Bankers Association in Amsterdam.
On the bond front, no one is taking any initiative 24 hours ahead of Jerome Powell's speech: the US 10-year and 2-year yields are down 2.5pts, while in Europe, Bunds and OATs are also down 2.5pts, returning to their Thursday levels of 2.495% and 3.001% respectively.
The dollar is also little changed, shedding -0.2% to 1.0795/E (the '$-Index is down -0.15%).

In French company news, Sanofi has announced a €1.1 billion increase in investment in its major industrial projects in France, to create new bioproduction capacity at its sites in Vitry-sur-Seine (Val de Marne), Le Trait (Seine-Maritime) and Lyon Gerland (Rhône).

EDF announces the signature, with several major international banks, of green bank loans dedicated to the financing of its nuclear fleet in France for around 5.8 billion euros, with maturities ranging from three to five years.

For its part, Air France-KLM announces the launch of a cash buyback offer for two existing bond issues, as well as its intention to proceed with a new bond issue, with a view to extending the average maturity of its debt.


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