he increase in US Producer Price Index (PPI), which is thwarting forecasts, is not impressing Wall Street, which has reopened in the green and is maintaining gains of between +0.1% and +0.2%... a behavior quite similar to that of the previous day, with an extra 'stat'.

The Paris Bourse, which was trading at equilibrium this morning, around 8,210 points, is slowly moving upwards (+0.2% towards 8,225), in volumes that remain as insignificant as ever (barely 1 billion euros traded in 7 hours), but the CAC40 is well helped by gains from Société Générale (+3.8%), Kering (+2.7%) and Véolia (+2.5%).
The Euro-Stoxx50 is struggling to get back into the green, but the AEX (Amsterdam) is about to set its 8th consecutive closing record (8 sessions in May: 8 rises).

No reaction on Wall Street to the publication of the US Producer Price Index (PPI), which nevertheless disappointed expectations at all levels.
The Labor Department reports that the PPI rose by 0.5% on a reported basis and by 0.4% excluding food (against an expected stability), energy and commercial services, in April compared with the previous month.

Over the last twelve months, producer prices rose by 2.2% on a reported basis (against 1.8% in March) and by 3.1% excluding food (against 2.8% in March).
This will not encourage the Fed to loosen its monetary policy: the interest-rate markets could expect it to push back the deadline for a rate cut even further.
Paradoxically, however, US T-Bonds are easing by an average of -2Pts (versus +3Pts after the 'PPI'), as they are pinning their hopes on statements by US central bank chairman Jerome Powell, who will be speaking this afternoon in Amsterdam at a conference organized by the association of foreign banks in the Netherlands.

In Europe, inflation in Germany came in at +2.2% (stable) and the ZEW index of German investor sentiment rose by 4.2 points on April to stand at +47.1, confirming that economic conditions are gradually improving in Europe's leading economy.
Bunds are up +1.6Pt to 2.523%, our OATs are up +1.7Pt to 3.03%, and Italian BTPs are up +2Pts to 3.873%.
The widening yield spread on US/EU Treasuries is depressing the Dollar, which is down -0.3% to 1.0820/E.

On the other hand, the news is relatively quiet on the corporate results front, although investors will be keeping an eye on the release of US DIY giant Home Depot, scheduled before the Wall Street opening.

This morning, German chemicals and pharmaceuticals group Bayer reported first-quarter performance in line with expectations, and confirmed its full-year targets.

In French company news, Dassault Systèmes announced a five-year extension of its long-term strategic partnership with JLR (Jaguar Land Rover), with the deployment of its 3DEXPERIENCE platform across all of the British automaker's automotive programs.

Veolia announced that, via its subsidiary SIDEM, it has won a $320 million contract to design and supply key technology for the Hassyan seawater desalination plant in Dubai, United Arab Emirates.

Finally, UBS announced that it was maintaining its 'neutral' recommendation on Crédit Agricole, while raising its target price for the stock from 13.9 to 15.6 euros, a new target broadly in line with the French bank's latest share price.

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