(News Bulletin 247) – New absolute record in session yesterday for the CAC 40: the flagship equity index of our domestic market will have managed to register a historic high point at 7,387.29 points, in rising volumes, with the support from the banking sector, and the continuation of the ball of quarterly, well-made.
Orange (+6.5%) finished at the top of the index after having published objectives for 2025 considered reassuring by Barclays as well as its annual results. The telecom operator has notably announced that it plans to increase its dividend in 2023 and 2024. Pernod Ricard ends up 3.4%. The spirits group published half-year results above expectations, thanks to its excellent pricing power. Airbus (+4.9%) delivered a half-fig half-grape publication with disappointing prospects. But on the contrary, its annual results have largely exceeded analysts’ expectations.
In terms of statistics, the producer price indices for the month of January in the United States, well above expectations (+0.7%), as are the weekly registrations for unemployment benefits, below 200,000 new units , have once again shown, as leading inflation indicators, the strains on the economic machine. A new reminder for the Fed that maintaining a firm monetary policy throughout 2023 will be essential.
These price data provide strong arguments for the US Federal Reserve to continue its monetary tightening in the face of persistent inflation. “A member of the Federal Reserve (Fed) has arguments to justify an increase of 50 basis points (0.20 percentage point, Editor’s note) at the next meeting of the institution. Investors were counting so far on a increase of 25 basis points”, reports on Twitter Michael Hewson, analyst of CMC Markets, quoted by AFP.
On the other side of the Atlantic, this battery of statistical figures catalyzed a decline in prices on the main equity indices, like the Dow Jones (-1.26% to 33,696 points) and the Nasdaq Composite (-1.78% to 11,855 points). The S&P 500, benchmark barometer of risk appetite in the eyes of fund managers, lost 1.38% to 4,090 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 $1.0630. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $77.40.
To follow as a priority on the macroeconomic agenda this Friday, the consumer price index (final data for January) in France at 8:45 a.m. and import prices in the United States at 2:30 p.m.
KEY GRAPHIC ELEMENTS
In rising volumes if not particularly fed, the CAC 40 ended up significantly on Wednesday, offering itself the luxury of closing at a level very close to the high points of the session. The traced candle, formally in marubozu near perfect, coupled with an engulfing combination, reinforced the underlying bullish message. The next day in session, new historic records were broken.
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.
The News Bulletin 247 board
Hourly data chart
Chart in daily data
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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.
