CAC 40: Less unconditionally buyer

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(News Bulletin 247) – A “warm” return below the symbolic bar of 7,000 points for the CAC 40 on Thursday, against a backdrop of resurgence in fears of the entry into recession of the main economic poles of the planet (China, United States, Europe ). The firm tone adopted by Christine Lagarde will also have weighed. According to comments reported by Reuters, the central banker said that inflation in the euro zone was far too high and that the institution would maintain the course of rate hikes to bring this inflation down to 2% within a reasonable time. These remarks were perceived as restrictive by the market. Following statements by Christine Lagarde, the yield on the German 10-year bond rose, and is currently up 0.02 points to 2.046%.

On the statistical side, alert on the level of weekly registrations for unemployment benefits across the Atlantic, which as a symbol once again fell below the psychological bar of 200,000 units, revealing strong and persistent tensions on employment, tensions themselves generating ‘inflation.

On the value side, the automotive equipment files, with a strong Beta effect, unsurprisingly amplified the decline yesterday, like Faurecia (-4.65% to 17.515 euros), Plastic Omnium (-4.92% to 15.06 euros), and Valeo (-4.93% to 18.90 euros). Veterinary laboratories know opposite fates. Virbac finished at the top of the SRD (+6.1%) after publishing a sharp increase in turnover, of nearly 16%, in the fourth quarter. Vetoquinol lost 7.3%, while its revenues fell 0.8% at constant exchange rates over the same period.

On the other side of the Atlantic, the main equity indices fell (moderately) on Thursday, like the Dow Jones (-0.76% to 33,044 points) and the Nasdaq Composite (-0, 96% at 10,852 points). The S&P 500, the benchmark barometer of risk appetite in the eyes of fund managers, fell 0.76% to 3,898 points.

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 $1.0840. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $80.50.

To be followed as a priority on the macroeconomic agenda this Friday, a new speech by Mrs. Lagarde, President of the ECB, at 11:00 a.m., on the occasion of the Davos forum, as well as the sales of old homes at 4:00 p.m.

KEY GRAPHIC ELEMENTS

The flagship tricolor index began yesterday, on a candle with an elongated red body, without shadow, a legitimate phase of correction, limited in absolute value, with regard to the initial advance since the beginning of the year. The amplitude of this profit-taking phase will serve as a framework for a future consolidation figure.

FORECAST

In view of the key graphic factors that we have identified, our opinion is neutral on the CAC 40 index in the short term.

We will take care to note that a crossing of 7000.00 points would revive the tension in the purchase. While a break of 6760.00 points would relaunch the selling pressure.

Hourly data chart

Chart in daily data

CAC 40: Less unconditionally buyer (©ProRealTime.com)

©2023 News Bulletin 247

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