(News Bulletin 247) – Perfectly aligned in the wake of the 2021 vintage, the mood of the first session of 2022 was colored with optimism, with the support in particular of activity indicators in the Eurozone, and the lesser apparent virulence of the Omicron variant, the contagiousness of which, on the other hand, reaches its peaks. The CAC 40 index thus started the year with a historic record (7,217 points) in closing data, and 7,245 points during the session.
In terms of statistics, the final data of the manufacturing PMI activity indicator (IHS Markit) for the Euro Zone in final data for the month of December, came out perfectly in the target, at 58.0, the surprise score of the French component compensating for the slight disappointment of the German component.
Joe Hayes, Senior Economist at IHS Markit, comments on the latest survey figures: “The second half of 2021 has been particularly difficult for euro area manufacturers, but the latest survey results have not tarnished. festive atmosphere at the end of the year, the data for December highlighting signs of easing of the supply crisis which has hampered production chains in Europe for several months. The input delivery time index recovered for a second consecutive month to its highest level since February, signaling less deterioration in supplier performance at year-end. “
The institute also insists on “the easing of supply tensions [qui] also impacted purchasing prices, with manufacturers reporting the smallest increase in costs since April. “
In terms of values, Alstom (+ 1.6%) took advantage of the announcement of a contract estimated at 500 million euros over 15 years with the operator of the Bucharest metro. Axa took 1.2% following the finalization of the sale of Axa Bank Belgium to Crelan for € 691 million. Without any particular news, but in the continuity of a very good performance since its inception, OVHCloud climbed a further 8.6%, bringing the latent capital gain to nearly 50% for investors who had the flair to subscribe – the transaction took place in October at 18.50 euros, the bottom of the target range. For their part, Air France-KLM (+ 4.9%) and ADP (+ 4%) have benefited from the raising of the board of Citigroup, which has gone from selling to keeping on each. Not to be outdone, Airbus took 3.4% thanks to the usual leaks on the final count of annual deliveries, which should be higher than the target of 600 aircraft.
On the other side of the Atlantic, the main equity indices also closed in the green, like the Dow Jones (+ 0.68% to 36,585 points) or the Nasdaq Composite (+ 1.20% at 15,832 points). The S&P 500, the benchmark barometer of risk appetite in the eyes of fund managers, rose 0.64% to 4,796 points.
An update on other risky asset classes: around 8 a.m. this morning on the foreign exchange market, the single currency was trading at a level close to 1,1290$. A barrel of WTI, one of the barometers of risk appetite in financial markets, was trading around 76,20$.
To be kept on the agenda this Tuesday as a priority, across the Atlantic, the ISM manufacturing PMI activity indicator and new job offers (JOLTS) at 4:00 p.m.
KEY GRAPHIC ELEMENTS
The CAC index is now in the high part (at the extremum) of its very broad consolidation phase which takes place between 6,650 and 7,200 points. The underlying trend remains strongly bullish and as long as no reversal pattern is validated, this trend will remain the privileged working base. In the immediate future, caution is required. Only a clear overshoot, in powerful volumes and sustained volatility, of 7200 points would signal the start of an additional bullish wave. A wave which would then be appreciated in terms of the volumes and the quality of the sectoral federation. Conditions that were not met yesterday.
PREVISION
In view of the key graphic factors that we have mentioned, our opinion is positive on the CAC 40 index in the short term.
This bullish scenario is valid as long as the CAC 40 index is quoting above the support at 7185.00 points.
Hourly data graph
Daily data graph
©2022 News Bulletin 247
Source: Tradingsat
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