The Paris Bourse ended the day with a gain of 0.56%, at 7,290 points, as the general feeling was that the CPI published at 2:30 p.m. was in line with the FED's "pivot" scenario this autumn.

The CPI - one of the most eagerly awaited US stats in a month - came out perfectly in line with forecasts: consumer prices slowed to +4% annualized (+0.1% sequential) and core inflation (excluding volatile items) slowed to 5.3%, as expected.

The CAC40 owes its positive score to the rise of Teleperformance (+3.8%), Saint Gobain (+3.1%) and Legrand (+2.1%).

This morning, investors learned of the annual inflation rate in Germany.
It came in at +6.1% in May 2023, marking a further slowdown following rates of +7.2% in April and +7.4% in March.

Still on the statistics front, the ZEW indicator of economic sentiment in Germany came out mixed: it rose slightly in 'overall' terms in June to stand at -8.5 points, 2.2 points higher than in May, but a more detailed reading shows that 'experts do not expect the economic situation to improve in the second half of the year'.

Export-oriented sectors, in particular, are expected to perform rather poorly due to the weakness of the global economy", explains ZEW President Achim Wambach.

While the assessment of the outlook is picking up a little, the assessment of Germany's current economic situation, on the other hand, is down sharply: the corresponding index is down 21.7 points and currently stands at -56.5 points.

Markets hoping that the day's figures would shed light on the choices made by the US Federal Reserve or the ECB are left wanting.... and the bond markets, which had been on a rather positive trend since this morning, are looking a little grey after having incorporated the scenario of a 'status quo' on US rates and a 25Pt hike in key ECB rates.

The yield on ten-year US Treasury bonds was down -9Pts at 3.68% and is now +1Pt at 3.68%.

The ten-year German Bund, which had been easing by -3.5pts to 2.346%, has completely reversed course with +4pts to 2.422%, while OATs have risen from -4pts to 2.872% to +3pts to 2.942%. Italian BTPs will finish unchanged at 4.052%, compared with -6.5pts to 3.985%.

In French company news, Teleperformance announced the deployment of artificial intelligence (AI) tools on the ServiceNow cloud platform, a leader in digital workflow management, to improve the employee experience, increase productivity and transform its operations.

Saint-Gobain announced that it has reached a definitive agreement to acquire Building Products of Canada Corp, for 925 million euros.

Thales announces the signature of a binding memorandum of understanding to acquire 100% of the Australian group Tesserent Ltd, at a price valuing its equity at 176 million Australian dollars, or around 107 million euros.

Finally, the European Commission has approved, under the European Merger Regulation, the creation of a joint venture by Capgemini and Orange. The joint venture, Bleu, will provide sovereign cloud services meeting the criteria of the 'Cloud de Confiance' label in France, i.e. sovereign cloud services meeting specific security requirements set by the French Cybersecurity Agency, to a specific set of customers in France.


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