In green since the opening, the Paris Bourse ended the day up 0.24% at 7,267 points. The Paris index even came close to 7,300 points (+0.6%) in the early afternoon, before releasing some of the ground gained in the second half of the session.

The CAC40 benefited in particular from the performance of Stellantis, which gained 5.2% ahead of Worldline (+3.8%) and URW (+3.6%).

Investors were reassured today by the first estimate of German consumer prices for November: CPI fell by 0.6 points to +3.2%, its lowest level since June 2021 (+2.4%), according to the preliminary Destatis estimate.

The 4.5% year-on-year fall in energy prices is said to have had a particularly moderating effect.
Excluding food and energy, core inflation is expected to come in at +3.8% for the month just ended, compared with +4.3% in October.

'This reinforces the possibility that inflation in the eurozone will fall further, having already fallen more than expected in September and October', points out Christopher Dembik, strategist at Pictet Asset Management.

Of course, the fall in inflation is likely to reinforce expectations of rate cuts by the ECB, which are one of the main factors driving up financial markets at the moment", he adds.

Another important date is the publication, at 2.30pm, of the second estimate of US gross domestic product (GDP) for the third quarter: at +5.2%, it reflects much stronger growth than the 4.9% initially announced for economic activity over the period from July to September.

Consumption and investment (revised upwards) are the 2 main drivers of the most spectacular growth recorded since the 4th quarter of 2020.

On the currency markets, the euro weakens slightly, down 0.1% to around $1.0984.

On the government bond front, bond yields confirm their positive start to the week, with the yield on the ten-year Bund down 7pts to 2.422%, and the yield on our OATs down 7pts to 2.988%, falling back below 3% for the first time since August 31 and July 25.

The yield on T-Bonds is also down -6Pts to 4.273%, the lowest since September 14.

Fred Barkin, President of the Richmond Fed, believes that the markets are jumping the gun on rate cuts in 2024, and that his own expectations are far removed from those of the market.

His colleague Raphaël Bostik, much more of a dove, believes that inflation will eventually converge towards 2%.

Brent crude is up 0.9% at $82.4 a barrel, while the ounce of gold has broken through the $2040 barrier (+1.3%) and is approaching its all-time high of $2060

In other French company news, TotalEnergies has announced that it is investing £20 million to acquire a minority stake in Xlinks First Limited, a company to be founded in 2019 in the UK, joining investors Octopus Energy and Abu Dhabi National Energy Company.

RIVE Private Investment announces that it has signed an exclusive partnership with Safran Helicopter Engines, which has developed a decarbonization consulting offer with a CO2 emissions tracking model.

EDF announces the success of its first green bond issue dedicated to financing the existing nuclear fleet, for a nominal amount of €1 billion, with a maturity of 3.5 years and a fixed coupon of 3.75%.

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