As on Monday, the Paris (+0.8%) and European (+0.9%) stock markets are increasing their gains ahead of the Wall Street opening.
The CAC40, which is close to 8,060, is benefiting from gains by STMicro (+3.5%), Pernod Ricard (+2.5%) and the banking sector (+2% for Société Générale, +1.6% for BNP Paribas and Crédit Agricole).

US indices, which were expected to be stable this morning, reopened up by +0.15% to +0.2% (with unusual homogeneity), and the ongoing easing of interest rates is reassuring investors: gains in US stocks could be amplified (same scenario as yesterday).

US T-Bonds shed 4pts of yield to 4.446%, while the 2-year stagnates at 4.82%, meaning that the inversion of the curve is worsening (a technical precursor of economic slowdown).
Euro-denominated debt also shed 4pts, with OATs at 2.94% and Bunds at 2.44%... Italian BTPs shed just -1.5pts to 3.900%.

On the eve of public holidays (Armistice and Ascension) and in the absence of any major economic indicators, the rise in European indices can be explained above all by the absence of sellers (1.1 billion euros traded in 6.5 hours).
Against this backdrop, some strategists are beginning to worry about the stock markets' heavy dependence on the performance of technology mega-caps.

Equity markets are highly concentrated, centered on the 'Magnificent Seven' (31% of Nasdaq capi), with significant dispersion of performance at stock level", points out Nanette Hechler-Fayd'herbe, analyst at Lombard Odier.

Historically, such high levels of concentration have often been followed by a return to the mean, on the back of a stock market correction", she warns.

On the statistics front, seasonally-adjusted retail sales volumes rose by 0.8% in March in the eurozone and by 1.2% in the EU, compared with February 2024, according to estimates from Eurostat, the European Union's statistical office.

In France, the trade balance improved slightly in March, according to CVS-CJO data from the customs administration, with the deficit narrowing to 5.47 billion euros from 5.61 billion in February.

This timid improvement reflects a 2.9% month-on-month increase in French exports to over 52.2 billion euros, while imports rose by less than 2.4% to 57.7 billion.
Brent crude oil continues to consolidate (-0.7%) towards $83, while WTI tries to hold on to the $78 mark on the NYMEX.
The Dollar loses a few fractions against the Euro (-0.1%) towards 1.0780, while Gold stabilizes at $2,320/Oz.

In French company news, Arkema reports net income before non-recurring items down 14.8% to €138 million for the first quarter of 2024, or €1.84 per share, and EBITDA down 4.6% to €350 million, representing an EBITDA margin slightly up by 0.5 points to 15%.

Bouygues reports net income, group share, of -146 million euros for the first quarter of 2024, a loss widened by 12 million year-on-year, but recurring operating income from activities (ROCA) of 26 million euros, an improvement of 17 million.

On the occasion of Xi Jinping's state visit to France, TotalEnergies announced the signing of a strategic cooperation agreement with the Chinese energy group Sinopec, aimed at deepening their collaboration, particularly in low-carbon energies.

Finally, Suez announced the signing of three strategic agreements on ecological transition with its Chinese partners Envision, Chongqing Sanfeng Environment and Dongguan Water Group.

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