The Paris Bourse (+0.15% to 8,170) got off to a good start, setting a new record at 8,229, before easing to 8,140 points... and then rebounding in the wake of Wall Street.

Investors welcomed the Federal Reserve's announcements (positive over-interpretation, the bond markets don't have the same 'rose-colored glasses' reading), which confirmed yesterday that it was still planning three rate cuts this year (against 7 to 8 expected at the end of 2023).

The Fed left rates unchanged, as expected, on Wednesday evening, but its statement hinted that the slowdown in inflation - albeit uneven - could enable it to ease monetary policy in the months ahead.

The Fed's long-awaited dot plots continue to show three rate cuts in 2024, followed by three further reductions in the cost of money in 2025.

According to the CME's FedWatch barometer, traders now rate the probability of a rate cut in June at almost 72%, compared with 60% before the Fed meeting.

In this euphoric climate, Wall Street ended the day at its highest level ever, and ended the day on a flurry of record-breaking highs, extended on Thursday by as many new highs on the 3 main indices (Dow Jones gained +0.8% to 39,860, the S&P500 to 5,260, Nasdaq gained +1% to 16,530 and the Nasdaq-100 soared +1.1% to 18,450).

According to S&P Global's latest PMI survey of purchasing managers, growth slowed slightly in the US private sector in March, despite good form in manufacturing.
Its composite flash index - which measures activity in services and industry - fell to 52.2 this month, compared with 52.5 last month.
In the services sector, the PMI fell to 51.7, after 52.3 in February, but recovered to 52.5 in the manufacturing sector, from 52.2 last month, reaching an almost two-year high.

The index of leading indicators in the United States rebounded in February, thanks in particular to a healthy stock market, announced the Conference Board on Thursday.

This leading indicator, which is supposed to foreshadow the general trend in US economic activity over the coming months, rebounded by 0.1% last month, following a decline of 0.4% in January (compared to an expected -0.2%).
Despite this positive surprise, the ConfBoard says it sees factors likely to weigh on growth, which it sees slowing in the second and third quarters due to the impact of high interest rates on consumer spending.

Almost 24% of companies reported an increase in overall activity this month, while 21% reported declines; 52% reported no change.
The new orders index returned to positive territory for the first time since October, rising from -5.2 in February to 5.4 in March. The current shipments index rose by 1 point to 11.4 in March, its highest level since August 2022.

Overall, companies continued to report a decline in employment. The employment index rose by 1 point to -9.6 in March, its 11th negative figure in the last 13 months.

Like its US counterpart, the BoE also opted for a 'status quo' at lunchtime, but the market is anticipating the beginning of a shift in its monetary policy in the second half of the year.

In Europe, the morning was dominated by the publication of the latest PMI activity indicators for the eurozone: the HCOB flash composite PMI index for overall activity in the eurozone stood at 49.9 in March, compared with 49.2 in February, signalling a near-stabilization of activity levels in March.

With lower energy prices and the prospect of an ECB rate cut in June, there is every reason to expect sentiment to improve," predict Oddo BHF's economists.

On the bond market, US government bonds reacted very timidly to the Fed's statement: stagnating at 4.272%, after -1Pt the previous day.
It was a little more positive in Europe, with -2.5Pts on OATs at 2.85% and -3Pts on Bunds at 2.4050%.

The greenback gave up a further 0.1% against the euro, which climbed back to around 1.0940 after the Fed's rather conciliatory tone.
The ounce of gold broke through $2,200 and the ounce of silver gained +£5 towards $25.5.

Among stocks, investors are hoping that the stock market debut of the social media company Reddit, scheduled for the afternoon ($6.5 billion in anticipated 'valo'), will confirm the sparkling form currently displayed by the technology sector.

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