(News Bulletin 247) – Investors will continue to focus their attention on the banking sector today. Indeed, after a weekend of negotiations, UBS agreed to buy Credit Suisse for 3.25 billion dollars. As part of the deal, the Swiss National Bank has agreed to offer UBS a 100 billion Swiss franc liquidity line backed by a default guarantee from the Confederation, the Swiss finance ministry said.

Pending the decision of the American Central Bank, Wednesday, concerning its key rates, the American Federal Reserve and five central banks, including the European Central Bank in particular, have decided on a large-scale coordinated action, aimed at increasing accessible liquidity through their existing swap agreements. From Monday, March 20, 7-day operations in US dollars will no longer be weekly but daily. This mechanism should make it possible to quickly adjust the supply of dollars in the event of possible sudden tensions. This mechanism will be maintained at least until the end of April according to the European Central Bank. In addition, Christine Lagarde must speak this afternoon.

On the side of values, we will monitor Stellantis, which has announced that it will spend more than 200 million euros to build a factory in Algeria. Construction of the plant will be completed by August and production is scheduled for the end of the year. The site will have a production capacity of 90,000 vehicles per year.

KEY GRAPHIC ELEMENTS

In daily data, the technical configuration is degraded. The latest candlesticks indicate selling pressure. Indeed, the seller candlesticks have a significant size and their respective peaks are not yet attacked by buyers. We will now monitor the declines towards the 6800 points area before positioning ourselves for purchase.

FORECAST

In view of the key graphic factors that we have mentioned, our opinion is negative on the CAC 40 index in the short term.

This bearish scenario is valid as long as the CAC 40 index is trading below the resistance at 7000.00 points.

The News Bulletin 247 board

CAC 40
Negative
Resistance(s):
7000.00 / 7168.00 / 7225.00
Medium(s):
6844.00 / 6740.00 / 6610.00

Hourly data chart

Graphic made from the software Prorealtime

Chart in daily data

CAC 40: Credit Suisse takes center stage (©ProRealTime.com)
Graphic made from the software Prorealtime



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