Wall Street is likely to open without much relief on Thursday morning, following its sharp decline of the previous day, in the wake of worse-than-expected inflation figures which have weakened expectations of rate cuts.

At this stage, the initial indications given by futures suggest that the main indices will open around equilibrium, or even slightly higher.

After a difficult start to the week in which the US markets lost ground, a bargain-hunting start could support the stock market, but without much conviction given the already high valuations of US equities.

The three major New York indices lost between 0.8% and 1.1% yesterday in the wake of consumer price statistics showing persistent inflationary pressures, a phenomenon likely to distance the prospect of a Fed rate cut.

Investors remain attentive to all indicators likely to weigh on the Federal Reserve's monetary easing timetable.

This morning, the Labor Department reported that producer prices rose by 2.8% over the past 12 months, excluding food, energy and business services, up from 2.7% in February.

Weekly jobless claims fell to 211,000 in the week to April 6, from a revised 222,000 the previous week.

After yesterday's jolt from inflation figures, Wall Street hopes to come to its senses tomorrow, with the unofficial start of the earnings season for listed companies.

On average, S&P 500 companies are expected to report a 3.2% rise in first-quarter profits, their third consecutive quarter of growth.

If the improvement in corporate accounts is indeed confirmed, stocks should benefit, as this would justify a rise in share prices on the basis of unchanged valuation ratios.

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