The Paris stock market lost 0.4% of its morning high (peaking at 7,582 points) and is hovering around the breakeven point (around 7,550).

The CAC40 nevertheless set a new all-time record... for 1Pt compared with 7,581 on April 24, driven by Hermès (+1.3% at 2,025E) Teleperformance and Dassault Systèmes (+1%).

The CAC40 'GR' climbed to 22,940, setting a 3rd consecutive all-time record.

Since its low point at the end of October, the CAC40 index has recovered 11.5% on a near-straight line, thanks to the easing of inflation, which suggests a more accommodating approach on the part of the major central banks, with the CAC40 'GR' crossing the +20.5% annual mark.

The New York Stock Exchange reopened slightly higher on Tuesday, following the release of inflation figures deemed rather reassuring and in line with expectations (stable in November, at 4% in 'core' data): this maintains hopes of future rate cuts.

The Nasdaq was virtually stable, as was the S&P500, while the Dow Jones posted +0.2% (zenith at 36,460) before returning to equilibrium.

The New York Stock Exchange reopened slightly higher on Tuesday, following the release of inflation figures deemed rather reassuring and in line with expectations (stable in November, at 4% in core data, +3.00 in gross data): this maintains hopes of future rate cuts.

Following these figures, investors estimate the probability of a quarter-point rate cut in March at around 44%, according to CME Group's FedWatch barometer, compared with around 42% yesterday.

The FOMC is expected to leave interest rates unchanged tomorrow, but its statement could provide some valuable clues as to its rate intentions.

Note, however, a continuing rise in housing costs, a component closely followed by analysts: this rise is linked to the drying-up of supply, as nobody wants to borrow again at 7% after having been able to buy with a 3.5% mortgage rate 2 years ago.
So, there are no more sellers, and the solution for solvent buyers is to build a new home.

On the bond front, US bond yields have fallen slightly: the 10-year is back to 4.235%, compared with 4.24% the previous day.

Investors are adopting a wait-and-see attitude ahead of today's two-day Federal Reserve monetary policy meeting.

Although no major announcements are expected at the end of tomorrow's monetary policy meeting, market players will be on the lookout for any indications of the timing of future rate cuts.

In Germany, the ZEW index may show a slight brightening of economic expectations for the months ahead.

There was also little movement on the foreign exchange market in the wake of the euro's severe correction, with traders visibly convinced that the ECB will beat the Fed to a rate cut.

At around 1.0780, the single currency is currently staging a timid rebound (+0.1%) against the dollar.

On the oil front, Brent crude is up 0.2% at around $76.4 a barrel.
In French company news, Saint-Gobain announced that it had signed a power purchase agreement (PPA) with CVE, an independent French renewable energy supplier, guaranteeing access to around 140 GWh of solar electricity in South Africa over a 20-year period.

TotalEnergies announced on Tuesday that it had acquired three start-ups (Dsflow, Predictive Layer, Time2plug) with the stated aim of accelerating its development in the electricity sector.

Finally, Renault Group announces that it will sell up to 211 million Nissan shares to Nissan, representing around 5% of the Japanese group's capital, out of the 28.4% of Nissan shares that were transferred by Renault to a French trust on November 8.

Copyright (c) 2023 CercleFinance.com. All rights reserved.