The Paris Bourse is likely to open on a weak note on Wednesday morning, as it awaits the publication of Germany's first inflation estimate for May, which could well surprise on the upside.

At around 8:15 a.m., the 'future' contract on the CAC 40 index - June delivery - fell by 35.5 points to 8019.5 points, heralding a start to the session in negative territory in the wake of the previous day's decline.

At 2:00 pm, 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.

By the end of the week, market participants will have further indications of price trends in Europe, with Spanish figures to be released tomorrow, followed by French and eurozone data 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.

The 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 decline 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 continuing 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 10-year US Treasuries is rising well above 4.54%.

New York index futures are currently suggesting a red opening on Wall Street, with investors tempted to pause after the all-time highs set the previous day.

Strategists at Deutsche Bank point out that the S&P 500 index has just posted 23 weeks of gains in the last 30 trading weeks, a performance that puts it on a par with its 1989 bull run.

'If this week were to result in further gains, we would be looking at 24 weeks of gains out of 31, which would be a new record since 1963', they add, pointing out that it is rare to observe such a phenomenon.

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