The Paris Bourse is set to continue its rebound on Wednesday morning, in the hope that the eagerly-awaited publication of the monthly US inflation report will confirm the scenario of future rate cuts.

At around 8:15 a.m., the CAC 40 future contract - expiring in May - gained a further 16 points to 8246 points, meaning that the Paris index is set to move a little closer to the major 8250-point threshold.

The tone of the session will be set at 2.30pm by US consumer price index (CPI) figures, likely to guide the Federal Reserve's next decisions

Optimism has returned to the equity markets in recent weeks on the back of reassuring economic indicators, but investors are still wondering about the timing of the Fed's next rate cuts, faced with persistent inflation.

For the teams at Ostrum AM, this afternoon's US CPI will be the real 'justice of the peace' on the world's financial markets this week.

"Despite the likely easing, US inflation could revive market volatility", warns the asset manager.

The consensus is for the CPI index to remain stable at +0.4% sequentially in April, as in March, but also year-on-year, with an average forecast of +3.4%.

Yesterday's better-than-expected producer price figures confirmed the reawakening of inflation, but the downward revision of previous months' statistics reassured the markets.

As a result, the rise accelerated towards the end of the session, enabling the Nasdaq to reach a new all-time high, notably in the wake of Tesla (+3.3%) and Nvidia (+1.1%).

Wednesday's session promises to be enlivened by other key indicators, such as US retail sales, which should confirm the slowdown in consumer spending across the Atlantic.

On the bond front, the yield on 10-year US Treasuries continued to ease to around 4.45% ahead of the publication of the US inflation report.

Yields on German Bunds of the same maturity are following the opposite trend, rising to 2.55%.

Crude oil prices continue to rise on optimism about demand: Brent crude oil is up 0.7% to nearly $83 a barrel, while US light crude (WTI) is up 0.8% to $78.6.

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