(News Bulletin 247) – The CAC 40 index continued its nervous part of yoyo on Wednesday, on firm price levels, managing to gain 0.96% at 7,188 points at the close, with the support of Crédit Agricole (+4 .26% to 11.694 euros) and Legrand (+4.06% to 85.12 euros), which made quarterly copies of very good quality. The second French bank by market capitalization exceeded profitability expectations in the 4th quarter of 2022, confirming its objectives for 2025 and the group of electrical infrastructures for buildings saw its growth fully benefit from the demand for energy efficiency.
In the statistical chapter yesterday, the operators took note of the weekly registrations for unemployment benefits in the United States, which once again came out below the bar of 200,000 new units, illustrating, if more was needed, the extreme tensions on the housing market. American private job. As a reminder last Friday, the NFP report highlighted more than 510,000 job creations, and a surprise contraction in the unemployment rate to 3.4% of the active population. Which necessarily sounds like an alert for J Powell, who continues to warn against these degrees of tension.
“And while we were waiting for a more incisive Fed Chairman […] before the Economic Club of Washington after the employment figures on Friday, he once again relatively reassured market players by indicating that the Fed wanted to be transparent in order “not to surprise the markets”, decrypts Alexandre Baradez (IG France).”And the markets seem to have once again stopped at the softer parts of the speech while the two speeches [FOMC 1er février et Economic Club le 7] were rather “hawkish” in their overall tenor.”
On the other side of the Atlantic, the main equity indices ended Thursday’s session in the red, like the Dow Jones (-0.73% to 33,699 points) and the Nasdaq Composite (-1 .02% to 11,789 points). The S&P 500, the benchmark barometer of risk appetite in the eyes of fund managers, fell 0.88% to 4,081 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 $1.0735. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around 78.00$.
To follow as a priority on the macroeconomic agenda this Friday, the economic forecasts of the European Commission (timetable not communicated) and the preliminary data of the American consumer confidence index (U-Mich), at 4:00 p.m.
KEY GRAPHIC ELEMENTS
Despite the alert that sounded yesterday, the index “holds” for the time being, above the symbolic 7,000 points, which serves as a basis for intermediate technical support. Above this symbolic threshold, a consolidation can take place without jeopardizing the short-term bullish bias. Below, another serious safeguard is that of the 50-day moving average (in orange), bullish since the beginning of November 2022.
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 7422.00 points would revive the tension in the purchase. While a break of 7000.00 points would relaunch the selling pressure.
Hourly data chart
Chart in daily data
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