(News Bulletin 247) – The Paris Stock Exchange is expected in the green on Wednesday morning, investors continuing to put into perspective the market risk linked to the start of the fire that recently broke out in the banking sector.

Around 8:15 a.m., the futures contract on the CAC 40 index – due April – rose 34 points to 7136.5 points, suggesting a continuation of the upward movement of the past few days.

After gaining up to 1% shortly after the opening and briefly testing 7150 points, the Parisian market ended yesterday with a marginal gain of 0.1% to 7088 points, lining up a second session of progress.

This timid return of risk appetite is fueled by the ebb of fears about the health of European banking establishments, but also by some encouraging economic statistics in Europe.

Although the CAC may have already regained almost half of the ground lost during the sudden correction at the beginning of the month, it seems unlikely that the equity markets will regain the serenity in which they have been bathed since the beginning of the year.

For the chartists of Kiplink Finace, the Parisian index remains under the pressure of the bearish attraction threshold of 7000 points.

‘Graphically, this level of ambient instability weakens the recovery trend of the CAC 40, but the most embarrassing is that this situation could last and give more consistency to the major short resistances at 7175 and 7205 points’, underline the analysts.

“These two glass ceilings, hitherto ‘harmless’ graphically increase the pressure on a possible more sustained bullish recovery above 7250 points”, warns the stock market company.

A sign of the concerns that still haunt investors, Wall Street ended in the red on Tuesday following the release of solid statistics that could reinforce the Fed’s cautious approach.

The Dow Jones fell 0.1% to 32,394 points, while the Nasdaq Composite fell more than 0.4% to 11,716 points.

More encouraging, the CBOE volatility index, the most followed barometer of the state of mind of investors in the United States, returned yesterday below the threshold of 20 points, that is to say the level around which it evolved before the bankruptcy of the Californian bank SVB.

For the time being, it is above all the absence of negative developments in the global financial system that seems to be encouraging investors to return to fundamentals, in particular economic indicators.

One of the elements to watch over the coming days will be the evolution of inflation, in Europe as in the United States.

With the ebb in energy prices, inflation in the euro zone – which will be published on Friday – should have eased in March, which should not completely reassure a very vigilant ECB on prices.

Across the Atlantic, the PCE index – which will also be unveiled the day after tomorrow – should also mark a slowdown, but underlying inflation should persist, again justifying that the Fed remains on alert.

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