No surprise on this semi-holiday of Pentecost, the Paris stock market is experiencing a particularly low level of activity, and has been frozen for the past 90 minutes: the CAC40 has been stuck around +0.4% (and a pivot of 8.200 Pts) since the opening of the US markets, after peaking at 8,221 Pts... all this in anecdotal volumes, as only 800MnsE changed hands in 8 hours of trading (the one-billion mark for 'real' transactions will not be reached at 5:30 p.m.).

The CAC40 is supported by Air Liquide (+2%), which is fully recovering its 3.20E dividend, followed by Teleperformance and Sté Général (+3% and +2.5% respectively).

The underperformance of the CAC40 over the past month (+1.8% vs. +10% for the Nasdaq since April 19), which has repeatedly stalled below its major resistance of 8250 points, contrasts with the continuing surge of the US indices.
The Nasdaq (+0.7% towards 16.800) looks set to set a double intraday record/closing record (intraday done!), the S&P500 grabs +0.3% towards 5,324 (absolute record equalled) and this will suffice for a best-ever closing... the Dow Jones lags a little with +0.1% (towards 40,060) but is also in the running for the double intraday record/closing record (intraday done).

Wall Street looks set for a sixth consecutive week of gains, provided that Nvidia's results (+2.7% to $949 at the opening) - to be released on Wednesday evening - live up to investors' expectations, as they will determine the ability of the technology sector to continue to drive the markets upwards.

Analysts are expecting better-than-expected performances from the Californian processor manufacturer and an increase in its annual targets, as is the group's wont.

Beyond its forecasts, professionals also want the group to prove its ability to maintain its undisputed 'leadership' in the AI segment, perhaps with the announcement of new projects.

Good news would undeniably confirm the favorable direction of tech stocks, particularly those focused on artificial intelligence.

With Nvidia's share price up by more than 88% since the start of the year, some investors are beginning to wonder about its remaining upside potential... but many see the stock finishing above $1,000 this Friday, May 26.

Market participants will also be keeping an eye on a whole series of statistics, starting with the European PMI indices expected on Friday, which will tell us more about the economic recovery on the Old Continent.

Statistics will be rarer in the USA, although the minutes of the Federal Reserve's latest monetary policy meeting will be closely followed on Wednesday evening.

In recent weeks, markets have reacted favorably to slowing inflation and weaker-than-expected indicators from the USA, as they presage further rate cuts by the Fed.

While the adage 'Bad news is good news' currently prevails, some strategists are wondering whether a context of softer growth could end up having a negative impact on world stock markets.

The question now is: how long can negative macroeconomic news continue to support equity valuations?" asks Florian Ielpo, Head of Macroeconomic Research at Lombard Odier Investment Managers.

"It seems that falling interest rates are no longer enough to support the markets, which raises the spectre of potential pitfalls", warns the professional.
Bond markets start the week on a heavy note, with +2.5pts on T-Bonds at 4.4450%, while our OATs and Bunds show +2Pt and +2.5Pts at 3.0290% and 2.5380% respectively.
Gold approaches record highs at $2,420, while the $ remains stable at 1.0870E.

In news from French companies, Danone announced on Friday evening that it had completed the sale of its EDP (dairy and plant-based products) activities in Russia to Vamin R LLC, following receipt of the required Russian regulatory approvals, as announced on March 22.

Eiffage announced on Friday evening that over 57,000 employees had subscribed, via the FCPE Eiffage Actionnariat Relais 2024, to its capital increase reserved for employees announced on February 28.

Alstom announced that the first four trams in the Nantes Métropole T1 tramway project had entered commercial service on Saturday, as part of the gradual replacement of the 46 TFS streetcars that have been running in Nantes since 1984.

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