(News Bulletin 247) – The Paris Stock Exchange should continue to rise on Wednesday morning in the wake of Wall Street’s rise the day before following the publication of several statistics confirming the good performance of the American economy.

Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – July delivery – climbed 40.5 points to 7268 points, suggesting a third session in a row in the green.

The rebound in US stocks last night should provide support for European equities, which have been battered in recent days by doubts surrounding growth and the evolution of monetary policies.

The announcement of a jump in new home sales, then a sharp rise in the consumer confidence index, largely supported the trend on the New York Stock Exchange on Tuesday.

The Dow Jones ended with gains of around 0.6% to 33,927 points, while the Nasdaq Composite rose more than 1.6% to 13,556 points.

Optimism that a recession can be avoided should support equity markets as investors begin to believe in the possibility of a hard landing for the economy.

‘Without a recession in the United States, a global recession is not likely’, remind the teams of Evli, a Scandinavian management company.

A point of view shared by the strategists of Carmignac.

“As long as the economy slows without collapsing and the pace of disinflation continues, restraining long-term interest rates, equity markets should remain on a crest line”, estimates Kevin Thozet, l one of the Parisian investment fund strategists.

But if global growth continues to show resilience in the short term, it also means that central banks will have to continue to tighten policy in the months ahead.

The Tokyo Stock Exchange soared more than 1.9% in the wake of the recovery of Wall Street. For their part, the Chinese stock markets evolved without a clear trend: the Hang Seng index of the Hong Kong Stock Exchange was at equilibrium.

On the foreign exchange market, the euro is starting to fall again after having benefited yesterday from the very firm remarks made by Christine Lagarde at the Sintra forum (Portugal).

For the President of the ECB, inflation remains too high in Europe and the institution will have to continue its fight against rising prices ‘whatever the cost’.

The single currency is trading below $1.0950 this morning after testing the 1.0980 threshold yesterday.

On the bond side, the solid figures published yesterday in the United States are driving up yields, with a rate of 10-year American Treasuries which has risen above 3.76%.

Crude prices are moving up slightly pending the publication in the afternoon of weekly oil inventories in the United States.

The barrel of Brent rose 0.7% to 72.7 dollars and that of American light crude (WTI) advanced 0.7% to 68.2 dollars.

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