This evening, the CAC40 posted its fourth consecutive day of gains, climbing 1.57% to 7333 points, aided by STMicro (+4.7%), Teleperformance (+3.2%) and Axa (+3%).

Investors welcomed the early afternoon release of the US consumer price index (CPI).
Indeed, US inflation continued to contract in both the "global" and "core" indices.

The US consumer price index rose by just 3% in June compared with the same month in 2022 (when it was +9.1%), the lowest annual rate since March 2021, and slightly below economists' expectations (3.1%).

Also according to the Labor Department, core inflation came in at 4.8% in June, again 0.1% below the market's average expectations.

Among the biggest price declines over 1 year, diesel was down 36.6%, gasoline down 26.5%, industrial gas down 18.6%, and used vehicles down 5.2%.

Public transport prices rose the most, with +8.2%, followed by meals delivered to the workplace, with +7.7%.

Fed members are due to speak this week, and are likely to be more positive about the trajectory of inflation, and 'may increasingly suggest that rate hikes should soon be over'.

Bond markets also greeted the CPI release with an almost uniform easing of -11 basis points on both sides of the Atlantic, with T-Bonds at 3.875% and OATs at 3.10%.
Bunds are down -10.5pts to 2.544%, Italian BTPs -15pts to 4.256%... and British Gilts are only down -9pts to 4.5750%.

The dollar is down -1% towards its annual low of $1.1125 to the euro, while oil is up a symmetrical +0.8% to $80 in London for a barrel of Brent crude.

In the Paris stock market, Thales (+3%) announced that it had entered into exclusive negotiations to acquire Cobham Aerospace Communications, a supplier of advanced cockpit communications systems.

Bolloré has concluded the contract for the sale of 100% of Bolloré Logistics to the CMA CGM Group, following the completion of information and consultation procedures, and the exercise by Bolloré of the offer to purchase received on May 8.

Euronext announces the launch of two new SBT indices, Euronext Europe SBT 1.5° and Euronext Eurozone SBT 1.5°, to 'meet the growing demand from investors and markets for sustainable investment tools'.

Air France-KLM announces the implementation of a reverse stock split of its share capital, through the allocation of one new ordinary share with a par value of 10 euros against 10 old shares with a par value of one euro.

Finally, TotalEnergies announced this evening that it had won two marine concessions of around 100 km² at the end of auctions held in Germany. The concessions will run for 25 years, extendable to 35 years. With capacities of 2 GW and 1 GW respectively, these two wind farms will supply a volume of electricity equivalent to the consumption of over 3,000,000 households.

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