(News Bulletin 247) – In the absence of a benchmark from Wall Street, which remained closed on Monday due to a public holiday (Juneteenth), the Paris market very timidly regained a few points (+0.64% to 5,920 points ), in discrete trading volumes. The amplification effect, value by value, of this slight rebound was however particularly notable in the aeronautics and automotive sectors: let us quote Plastic Omnium (+3.97% to 16.77 euros), Safran (+5.69% to 96.33 euros), Faurecia (+7.72% to 20.86 euros), Air France (+7.87% to 1.3645 euros), Valeo (+8% to 20.39 euros), and Renault ( +9.74% to 26.375 euros), the latter taking advantage of a note from Jefferies going buyer of the file with a price target housed at 40 euros against 22 euros previously.
Operators, however, remained on their guard following the results of the second round of legislative elections. The French political landscape is clearly fragmented, the presidential party having failed to obtain an absolute majority at the end of the second round of legislative elections on Sunday, far from it. The risk of a blockage of the country begins to make its way on the side of the French bond market, the rate of the OAT to 10 years which was trading at 2.21% Monday morning tended to 2.30% at the close of the European markets.
To be complete on the chapter of values, Valneva jumped 29.3% while Pfizer will acquire 8.1% of the French biotech for more than 90 million euros through a reserved capital increase.
The markets remain stunned after the tightening, monetary or verbal, of the major central banks last week. “The hypothesis of witnessing a brutal tightening of American monetary policy weighed heavily on the equity markets”, summarizes BNPPAM in a market note. “At a time when they are emerging, more or less gradually, from the exceptional monetary policies put in place to fight the pandemic, central banks remain attentive to the reactions of investors. The fight against inflation has once again become the essential element of their function. of reaction, but there would be no point in provoking a new crisis.”
No major statistical figures were on Monday’s agenda. The rest of the week will nevertheless be dense on the statistical front with, among other events, sales of new homes across the Atlantic today, the European consumer confidence index on Wednesday, PMI activity indicators (data flash for the current month) on Thursday, German IFO and U-Mich revised US consumer confidence data on Friday.
A point on the other risky asset classes: around 08:00 this morning on the foreign exchange market, the single currency was trading at a level close to $1.0520. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $110.00.
To follow as a priority on the statistical agenda this Tuesday, sales of old homes at 4:00 p.m.
KEY GRAPHIC ELEMENTS
The sell signals have multiplied since the combination of “evening star” candles (May 27, 30 and 31). The openings successively in bearish gap of the last two sessions of week 23, then of the first session of week 24, were accompanied by a continuous mobilization of the selling side during the session and closing on the low points of the session. All in sharply rising volumes. The momentum of participation will have followed that of the clearings, even as the CAC will have re-entered the lower part at a bearish slant that retains its resistance attributes. The picture is dark. The impossibility of quickly regaining the gaps mentioned, militates for a continuation of the movement. We specify at the end of last week as a reminder: “The closing of the day this Friday compared to the low point of the week will be scrutinized, because potentially rich in lessons.” It is clear that the weekly lows were hit on Friday, degrading the weekly candle for the second time in a row. The technical rebound that began on Monday remains anecdotal at this stage in view of the accompanying transaction volumes.
FORECAST
In view of the key graphic factors that we have mentioned, our opinion is negative on the CAC 40 index in the short term.
This bearish scenario is valid as long as the CAC 40 index is trading below the resistance at 6000.00 points.
Hourly data chart
Chart in daily data
©2022 News Bulletin 247
I am currently a news writer for News Bulletin247 where I mostly cover sports news. I have always been interested in writing and it is something I am very passionate about. In my spare time, I enjoy reading and spending time with my family and friends.
