(News Bulletin 247) – The Paris Stock Exchange rebounds to 7,200 points, appreciating the confirmation of an easing of consumer prices in the euro zone.

The Paris Stock Exchange is back in good spirits, after confirmation late in the morning of a deceleration in inflation in the euro zone. The CAC 40 rebounded by 0.86% to 7,231.76 points around 1:30 p.m., the day after a decline of 0.57%. The weekly results therefore still remain clearly positive for the flagship Parisian index, which is currently gaining 2.6% over the week.

Markets are appreciating the recent trajectory of consumer prices on both sides of the Atlantic, which leaves open the prospect of an end to central bank rate hikes. In Europe, the consumer price index calculated according to European standards (HICP) slowed to 2.9%, in line with the “flash” estimate, after an increase of 4.3% in September.

The reaction was immediate on the bond market. Sovereign debt yields of Eurozone countries are falling to their lowest levels since September. The yield on the ten-year German Bund, which is the benchmark for the entire euro zone, fell to 2.53%, and to 3.11% for the yield on French debt of the same maturity (the OAT 10 years).

Money markets are now counting on a rate cut of 1 percentage point from the European Central Bank (ECB) by the end of 2024, according to Reuters.

In the United States, the markets took note this week of a clear slowdown in inflation for both consumers and producers. For an official of the American Federal Reserve, a soft landing of the world’s largest economy is an option to consider. “I believe a soft landing is possible, with continued disinflation and a strong labor market, but it is not assured,” Lisa Cook, a governor of the Federal Reserve (Fed), said during a conference in San Francisco.

In terms of values, it’s dead calm. We can cite Teleperformance which regained 1.8% after having raised 1.4 billion euros of long-term bonds, which was oversubscribed more than 5 times.

On the currency side, the euro increased by 0.1% to 1.0865 dollars. Oil prices are trying to rebound after losing more than 4% the day before. The barrel of Brent from the North Sea for delivery in January gained 1.5% to 78.58 dollars while its American equivalent, the barrel of West Texas Intermediate (WTI) for delivery in December, appreciated by 1.4 % to 73.92 dollars.