The Paris Bourse began the session higher on Wednesday morning, catching its breath following the previous day's heavy decline due to the reappearance of a strong sell-off in bonds. The CAC 40 index rose by around 1% to 8020 points, following Tuesday's plunge.

The Paris market had lost 1.4% to 7920 points yesterday, breaking through the important 8000-point threshold above which it had been trading comfortably for over a month.

The market climate was once again weighed down by the tensions affecting the US bond market, synonymous with ever-increasing debt servicing.

With economic indicators in the US surprisingly on the rise, market participants are questioning the Federal Reserve's ability to cut rates in the coming months as planned.

Investors are wondering how high yields will continue to rise, and at what point they will start to cause damage to the real economy.

Last October's surge in the yield on US ten-year Treasuries above 5% had, for the record, resulted in a consolidation phase for the world's stock markets.

Ten-year paper, which had reached five-month highs yesterday, is currently stabilizing below 4.66%, a level slightly below yesterday's peaks.

On the European bond market, benchmark yields are following suit: the ten-year German Bund is down slightly at around 2.48%.

Investors are also concerned that high yields will prevent equities from responding positively to the corporate earnings season currently in full swing.

This morning, Dutch semiconductor giant ASML reported unsurprising first-quarter results and confirmed its full-year forecasts, but announced a 5% increase in its dividend.

The economic agenda, on the other hand, looks relatively quiet.

The final inflation figures for the eurozone for April were published this morning. According to Eurostat, it stood at 2.4% in March, compared with 2.6% in February, confirming its flash estimate for last month, while the European Union's figure fell from 2.8% to 2.6% month-on-month.

In the UK, inflation eased to an annualized 3.2% in April, compared with 3.4% in March, paving the way for a future rate cut by the Bank of England.

In France, Oddo BHF reiterated its 'outperform' rating on LVMH, with a price target raised from 835 to 857 euros, suggesting a 12-month upside potential of around 10%, the day after the world's number one luxury goods company reported its quarterly results. LVMH posted sales of €20.7 billion in the first quarter of 2024, representing organic growth of 3% (-2% on a reported basis).

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