The CAC40, which quickly climbed above the 7,400 mark this lunchtime, is holding off a little: after gaining more than +1% (to a high of 7,408pts), it is stabilizing at around +0.7% at 7,385.

At around 3pm, the CAC40 'GR' was within 0.2% of its all-time closing zenith at the end of May: erasing this record looked like a mere formality before the weekend (tomorrow, the Paris market will be easily manipulated in the absence of a majority of investors who will be on the July 14th bank holiday).

The Euro-Stoxx50 (+0.8%) equalled its April 21 all-time closing high of 4,408Pts before settling back to 4,400.
On Wall Street, the session got off to a good start, with the Dow Jones up 0.2%, the S&P500 returning to the 4,500 mark thanks to a +0.5% rise, and the Nasdaq gaining +1% to over 14,000Pts.000Pts.

The VIX (-1.6%) fell back to 13.3, 2% off its most favorable level of the year, while interest rates eased by -8Pts, with our OATs back to 3.0250%, Bunds below 2.47% and US T-Bonds content with -4Pts to 3.8230%.

The "fact of the day" was certainly the Dollar's further fall, as it smashed a new annual low against the Euro, up +0.5% to 1.12000 (and 1.1190 around 5pm).
The greenback was weakened by the probability of a 2nd rate hike by the Fed in mid-September, which fell in 48 hours from 50% to less than 15%.
"While the Federal Reserve will probably raise rates again at the end of this month, these data support our view that this should be the last hike", commented Commerzbank after the publication.

The decline in inflation is surprisingly rapid, and after a CPI reading of +3%, the Labor Department published US producer prices up by just 0.1% in June compared with the previous month, both on a gross basis and excluding food, energy and commercial services.

Over the last twelve months, producer prices rose by 0.1% on a reported basis in June and by 2.6% excluding food, energy and commercial services, following annual rates of 0.9% and 2.8% respectively in May.

There was a figure for the Eurozone this morning: seasonally-adjusted industrial production rose by 0.2% in May and by 0.1% in the EU, compared with April, according to estimates from Eurostat, the European Union's statistical office.

The disinflation dynamic also seems to prevail in France, where Insee this morning confirmed a slowdown in annual consumer price inflation to +4.5% for the past month, after +5.1% in May.

On the value side, Carmila gained 6.4% to 15.3E after an agreement to acquire 93% of the capital of the Galimmo real estate company, a potential acquisition that will be carried out simultaneously with Carrefour's acquisition of Cora France (+1%), announced at the same time.

Kaufman & Broad climbed nearly 4% following the publication of a 69% increase in net income, group share, to 38.5 million euros for its first half-year, on sales up 47% to 849 million.

Casino, on the other hand, lost nearly 3.5% following an update by the food retailer on its first-half performance in France, unveiled as part of the conciliation procedure with its creditors.


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