The Paris stock market is down nearly 0.3%, at around 7185 points, penalized in particular by the luxury goods sector, with -1.7% for Kering and -1.6% for LVMH.

After ten out of 13 sessions of gains - thanks to renewed optimism about inflation and the US economy - investors seem keen to take some profits. It should be noted that since November 27, the CAC has recovered more than 6% in a straight line, consecutively re-crossing the 6800, 6900, 7000, 7100 and 7200 point thresholds.

After such a run, it is perfectly normal to see the market taking a short break to digest this particularly powerful move, which has enabled it to reactivate its short-term uptrend.

Such a technical rebound was conceivable after three consecutive months of declines in global equities, which had led to extreme configurations on a number of indicators (oversold markets, investor positioning)", recalls BNP Paribas Asset Management.

Market enthusiasm can be explained by the recent readjustment of the outlook for rate hikes in the USA, with the probability of tightening now estimated at 0% at the end of the next Fed meeting.

While investors anticipate the end of the monetary tightening cycle of the major central banks, the persistence of high inflation could call market optimism into question, point out the teams at BFT Investment Managers.

The main risk being scrutinized by the markets remains that of high inflation, which would push central banks to remain restrictive", says the portfolio management company.

"If central banks are unable to ease financial conditions to adjust to the slowdown that is expected due to high inflation, the slowdown will be all the more severe", adds BFT.

In this case, there will be no more 'soft landings', let alone 'no landings', and risky assets will have to adjust downwards", concludes the Amundi subsidiary.

On the bond front, the yield on 10-year US Treasuries is stabilizing at around 4.53%, while the decline in inflation is becoming increasingly visible as a result of falling energy prices.

On the energy front, oil prices are continuing to decline following yesterday's announcement of a weekly rise in crude oil inventories. In London, Brent crude fell by 0.3% to $80.8, while US WTI dropped by 0.5% to $76.3.

Today, investors will take note of a new series of US indicators: import prices, jobless claims, the Philadelphia Fed index and industrial production.

In news from French companies, ADP announced last night that passenger traffic at its two Paris airports rose by 8.3% in October compared with the same month last year, to 8.9 million people carried.

Vallourec's quarterly results show that it now expects EBITDA (gross operating profit) of between €1,075 and €1,175 million for 2023 (compared with previous expectations of between €950 million and €1.1 billion).

Finally, TotalEnergies EP Gabon, owned 58.28% by TotalEnergies and 25% by the Gabonese state, reports net income of $18 million for the third quarter of 2023, a slight 6% improvement on the second quarter.

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