(News Bulletin 247) – Resistance to temptations to take profits was still impressive yesterday, with the CAC forming a doji (not synonymous with indecision, but with confirmation), in the immediate vicinity of 7,100 points, well helped by STMicroelectronics (-8.19% to 42.68 euros), and in its wake, a whole “Growth” section of the rating, like files like Wordline (+1.84% to 40.88 euros), Hermes (+2.32% to 1,696.50 euros), or Kering (+2.56% to 547, 90 euros).
STMicroelectronis delivered forecasts for the first quarter of 2023 which thwarted market pessimism. The group, which counts Tesla and Apple among its customers, exceeded both its own expectations, which were respectively $4.40 billion for revenue and 47.3% for gross margin, and that of the consensus of analysts who expected revenue of $4.4 billion and operating income of $1.244 billion.
It is in this buoyant context that investors will approach the home straight of the week, with the statistical high point of the publication of the PCE price measure (personal consumption expenditures), the Fed’s favorite measure in its assessment of inflation. Fed which will complete the first FOMC of the year in the middle of next week.
In the immediate term, risk appetite should continue, with the publication of the excellent bill for the 2022 copy of the luxury giant LVMH.
On the other side of the Atlantic, the main equity indices ended Thursday’s session in green territory, like the Dow Jones (+0.61% to 33,949 points), and especially the Nasdaq Composite ( +1.76% to 11,512 points), with the support of Tesla (+10.97% to $160.27). The S&P 500, the benchmark barometer of risk appetite in the eyes of fund managers, gained 1.10% to 4,060 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 $1.0870. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $81.20.
To be followed in priority on the macroeconomic agenda this Friday, the American PCE prices at 2:30 p.m., household income and expenditure at 2:30 p.m., as well as the revised consumer confidence data (U-Mich) at 4:00 p.m.
KEY GRAPHIC ELEMENTS
The flagship tricolor index began on Thursday 01/19, 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.
Note the increase in the gap, at this stage, between the 20-day moving average (in dark blue) and its 50-day counterpart (in orange), with a marked upward bias. A basic bullish message, therefore, which may be temporarily clouded by increased temptations to take profits.
In the immediate future, the index “holds”, above 7,000 symbolic points, which serves as a basis for intermediate technical support.
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 7180.00 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
©2023 News Bulletin 247
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
