The Paris Bourse (-1.8% to 7,720) continues to underperform other European markets, and is dragging the Euro-Stoxx50 (-1.3%) below 4,970pts (medium-term supports approaching).

On the other hand, there's no stopping the US indices' record-breaking run, with the S&P500 gaining +0.2% to 5,430 and the Nasdaq up +0.7% to 17,730.430 and the Nasdaq up 0.7% at 17,730.
One wonders whether Wall Street isn't benefiting from the chaotic political situation in France and the downturn in European indices: investors are switching continents, but not abandoning equities.

Today's US figures only serve to reinforce US investors' confidence in disinflation: US producer prices (PPI) unexpectedly fell by -0.2% in May (to +2.2% year-on-year) due to lower energy prices, according to statistics released Thursday by the Labor Department.
Economists were forecasting a 0.1% month-on-month rise (after +0.5% in April).
The 'core' index measuring underlying pressure on producer prices, which excludes food, energy and commercial services, was perfectly stable last month after a 0.5% gain in April, and stands at +3.2% year-on-year.

The Labor Department reported 242,000 new jobless claims in the US in the week to June 3, up 13,000 on the previous week.

The four-week moving average - more representative of the underlying trend - came in at 227,000, up 4,750 on the previous week.

However, these 'encouraging' figures were hampered by Jerome Powell's comments, which dashed investors' hopes of monetary easing.

The new interest rate projections of his officials - the famous 'dot plots' - now show only one rate cut in 2024, compared with three so far.

Of the 19 members of the Monetary Policy Committee (FOMC), four expect no rate cuts this year, seven expect one and eight expect two.

'This FOMC isn't really a game changer (....) but it is a little more hawkish than expected", comments Bastien Drut, head of strategy and economic research at CPRAM.

"Powell is making an effort to decentralize Fed policy from the price stability mandate and to focus a little more on the labor market", adds the economist.

But the more restrictive stance of US monetary policy has not dissuaded investors from continuing to place massive amounts of capital on Wall Street.
T-Bonds continue to ease in the wake of Tuesday's session (-2Pts to 4.272%), with the '2-yr' erasing -3.5Pts to 4.7150%.

In Europe, Bunds improved by -2.3pts to 2.512% and continue to gain ground against our OATs, which gained +3pts to 3.1700%, i.e. +66pts spread (vs. 49pts last Friday).
NB: the yield on the Portuguese 10-year bond is now at parity with our OATs (oscillating between 3.16 and 3.1900% on Thursday).

The session promises to be poor in terms of macroeconomic indicators on the Old Continent, but the publication of industrial production in the eurozone disappointed with a 0.1% decline deemed "unexpected".

In April 2024, seasonally-adjusted industrial production fell by 0.1% in the eurozone and rose by 0.5% in the EU, compared with March 2024, according to estimates from Eurostat, the European Union's statistical office.

Consumer prices in Spain, calculated using harmonized European standards, rose by 3.6% year-on-year in May, confirming an initial estimate provided at the end of last month.

On the bond market, ten-year "Bonos" edged up slightly (+1Pt) to 3.376% (only 20Pts separate them from our OATs).

The dollar, which had gained +1% the previous day, lost -0.4% against the euro, which returned to the $1.0780 mark.

The oil market remains bearish after figures from the Energy Information Administration (EIA) showed a rise in US crude inventories.

Brent grabs back 0.3% to $82.7 a barrel, as does US light crude (West Texas Intermediate, WTI), which returns to $78.5.

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