(News Bulletin 247) – Note first of all that, due to our transition, in our turn, to summer time, Wall Street will open again, as usual, at 3:30 p.m. The traditional statistical appointments of the beginning of the afternoon therefore return to 2:30 p.m. and not 1:30 p.m., as was the case during this two-week interval.

Jostled by its banking sector, the CAC started to fall sharply on Friday, a session which concentrated on the week, the fears of investors on the solidity of the European financial system. After the disaster takeover of Credit Suisse less than ten days ago, it is the turn of another banking juggernaut in Europe to cause concern: Deutsche Bank. As reported by several press agencies, the German institution has faced a sharp increase in its CDS (Credit Default Swaps), hedging instruments against default risk. .

In the statistical chapter on Friday, the PMIs (flash data for March) in the Euro Zone came out in a contrasting way: the services component, at 55.6, clearly beat the target while the industrial component, at 47.6, missed the expectations.

On the securities side, while banking and financial stocks in the broad sense fell very significantly, industrial and cyclical stocks in the broad sense participated in the downtrend. Axa lost 2.17% to 26.63 euros, Crédit Agricole 2.06% to 9.941 euros, BNP-Paribas 5.27% to 50.47 euros, and Société Générale 6.13% to 19.90 euros. Alstom fell 4.08% to 23.75 euros, Legrand by 4.27% to 80.62 euros, Schneider Electric by 5.06% to 142.3 euros and Saint Gobain by 5.30% to 49.30 euros.

On the other side of the Atlantic, the main equity indices ended, in minimal proportions, in the green on Friday, like the Dow Jones (+0.41% to 32,237 points) or the Nasdaq Composite (+0.31% to 11,823 points). The S&P 500, benchmark barometer of risk appetite in the eyes of fund managers, has nibbled 0.56% to 3,970 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 $1.0750. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $69.70.

To be followed in priority on the macroeconomic agenda this Monday, the IFO business climate index and the M3 money supply in the Euro Zone at 10:00 am.

KEY GRAPHIC ELEMENTS

Certainly the 7,000 symbolic points were “saved” in extremis at the close on Friday. But the red body of the candle, with its amplitude, combined with the power of the trading volumes, precipitated the now imminent crossing of two remarkable moving averages: at 20 and 50 days (in dark blue and orange respectively).

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 7225.00 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):
7225.00 / 7422.00
Medium(s):
7000.00 / 6888.00 / 6740.00

Hourly data chart

Graphic made from the software Prorealtime

Chart in daily data

CAC 40: Still intense nervousness (©ProRealTime.com)
Graphic made from the software Prorealtime



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