(News Bulletin 247) – The CAC index managed to climb 0.25% to 7,317 points on Thursday, on the ebb of tensions on sovereign bond yields, and with the support of Wall Street, already back in the green. Favorable conditions for a rebound in the outperforming technology sector. On the flagship index, Cap Gemini gained 0.64% to 181 euros, Teleperformance 0.75% to 255.60 euros, Wordline 1.03% to 39.25 euros and STMicroelectronics 1.39% to 45.22 euros . THE statistical event of the session this Friday will be the publication of PCE prices (personal consumption expenditures), the Fed’s preferred measure of inflation.

In terms of statistics yesterday, operators were able to take note of the final data on inflation in the Euro Zone at +8.6% at an annualized rate for the month of January, in line with expectations. Excluding food, energy, alcohol and tobacco, prices rose slightly more than expected, to +5.3%. In addition, weekly registrations across the Atlantic fell to 192,000 last week, to a four-week low against 200,000 expected by the market. Either a new militant index for maintaining a firm monetary policy.

In terms of values, Stellantis finished at the top of the CAC 40 on Thursday evening (+3.6%) still driven by its excellent annual results delivered on Wednesday. On the other side of the spectrum, EssilorLuxottica fell 4.2%, after announcing a disappointing operating margin for 2022. Outside the CAC 40, Nexity fell 9.1% as its profitability will be put to the test. test in 2023 because the increase in construction costs will be more difficult to pass on due to the decline in real estate purchasing power.

On the other side of the Atlantic, the main equity indices ended in the green, like the Dow Jones (+0.33% to 33,153 points) or the Nasdaq Composite (+0.72% to 11,590 points). The S&P 500, the benchmark barometer of risk appetite in the eyes of fund managers, gained 0.53% to 4,012 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 $1.0590. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around 76.00$.

To be followed in priority on the macroeconomic agenda this Friday, PCE prices at 2:30 p.m.

KEY GRAPHIC ELEMENTS

In rising volumes if not particularly fed, the CAC 40 ended up significantly on Wednesday 02/15, offering itself the luxury of closing at a level very close to the high points of the session. The candle drawn, formally in near-perfect marubozu, lined with an engulfing combination, reinforced the underlying bullish message. The next day in session, new historic records were beaten. A serene consolidation can take place, even against the 20-day moving average (in dark blue), whose orientation remains bullish.

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

CAC 40
Neutral
Resistance(s):
7422.00 / 7740.00
Medium(s):
7000.00 / 6760.00 / 6520.00

Hourly data chart

Graphic made from the software Prorealtime

Chart in daily data

CAC 40: Focus on PCEs (©ProRealTime.com)
Graphic made from the software Prorealtime



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