The Paris Bourse is expected to open in the green on Tuesday morning, despite rising bond yields and pending the publication of further indicators and results.

At around 8:15 a.m., the future contract on the CAC 40 index - February delivery - gained 32.5 points to 7,633 points, suggesting an opening above the 7,600-point mark.

On the bond front, sovereign yields continue to rise in the wake of the Fed's reassessment of its interest-rate cut path.

The yield on the 10-year German Bund thus exceeded the 2.3% threshold during yesterday's session, while the US 10-year is back above 4.16%, close to its highest level since the start of the year.

Following recent statements by Federal Reserve Chairman Jerome Powell, investors are repositioning themselves to expect rates to remain at current levels for a slightly longer period than expected.

These tensions are, however, counterbalanced by the release of numerous statistics confirming the robustness of the US economy.

With data increasingly suggesting a 'soft landing' (economic slowdown without recession) in the US, markets are focusing more on growth prospects rather than the threat of inflation.

The start of 2024 has so far been characterized by a "goldilocks" scenario, an environment deemed favorable for financial markets, particularly equities.

With better-than-expected growth in the USA and a recession for the time being avoided in Europe, investors should feel that the current climate is neither too hot nor too cold, like the little girl's favorite bowl of porridge in the traditional tale.

It's worth remembering that, historically, after the Fed's first rate cut, in a recession-free environment, the US equity market rises by +10% in the 12 months that follow," notes Laura Corrieras, equity portfolio manager at Indosuez Wealth Management.

In addition to the good economic indicators, a number of rather reassuring earnings releases have reminded yield-seeking investors of the case for equities.

The fourth-quarter earnings season continues today with announcements from UBS, Eli Lilly, Toyota, Linde, Amgen, bp, Ford and Spotify.

In terms of indicators, retail sales in the eurozone are expected to point to a decline in December, while household consumption in the region has remained sluggish for several quarters.

Industrial production figures in Germany will also be closely watched to see how the German economy performed in December.

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