(News Bulletin 247) – The Paris Stock Exchange should imitate Wall Street on Tuesday by continuing its upward movement, an increase which however risks being limited at the start of a day loaded with indicators and results.
Around 8:15 am, the ‘future’ contract on the CAC 40 index – which has now switched to the February deadline – advances by 13.5 points to 7055.5 points, announcing a favorable start to the session.
Investors should, however, be careful not to take too many risks before the publication, later this morning, of the ‘flash’ PMI indices for the euro zone, which should further fuel the debate on the state of health of the European economy.
While the general trend remains favorable to equities, concerns remain over the strength of growth and the possibility of an onset of recession in the coming months.
If the environment remains difficult due to the inflationary shock and the tightening of monetary conditions, the decline in energy prices and the end of the zero-Covid policy in China could give some hope to European companies.
Under these conditions, the PMIs in Europe, as in the United States, should signal a slight rebound in economic activity in January.
Graphically, the Parisian market is looking for a fulcrum on the symbolic threshold of 7000 points, with the first short-term objectives remaining at 7050 and 7105 points.
From this point of view, technical analysts expect the next few sessions to be decisive in delivering an additional sign of what the trend may be to come.
‘The indices are approaching important technical levels which, if crossed, could signal a possible end to the downtrend’, underlines Philippe de Gouville, CEO and co-founder of the fintech Ismo.
Wall Street had benefited yesterday from a wind of optimism at the start of the quarterly earnings season and an indicator suggesting that the Fed could be less aggressive in its monetary tightening.
At the final bell, the Dow Jones rose nearly 0.8% and the Nasdaq Composite climbed 2%.
The results publication ball will continue in the United States today with announcements from 3M, GE, Halliburton, Johnson & Johnson, Travelers and Verizon.
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