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The CAC 40 index picked up a few colors on Wednesday (+1.39% to 7,186 points), with the support of the ebb of fears about banks, and good stock market performance in the technology sector. The automotive equipment sector, with its strong Beta effect, fully contributed to the improvement in mood.

The soundness of the banking system continues to be the focus of all attention, even if the climate seems calmer than at the end of last week with the takeover of Credit Suisse by UBS.

In terms of statistics, few things to put in their mouths yesterday. Let us quote however the targets beaten for the sales of residences in the United States and the inventories of rough. But traders already clearly have their eyes on Friday’s publication of personal consumption expenditures (PCE) prices, the Fed’s favorite measure in its assessment of price dynamics.

On the stock side, securities with high current beta, banking and automotive equipment, largely outperformed, such as Faurecia (+2.33% to 19.135 euros), Plastic Omnium (+2.34% to 16.21 euros), Valeo (+ 2.36% to 18.43 euros), BNP-Paribas (+ 2.69% to 53.37 euros). The fleas jumped, in the wake of the excellent prospects displayed by the German Infineon. Soitec gained 3.10% to 139.80 euros, and STMicroelectronics 6.40% to 47.36 euros, taking first place in compartment A of the rating. Finally, Atos, on the other hand, fell by 16.8% while Airbus finally gave up taking a stake in the future “cyber” branch of the digital services company.

On the other side of the Atlantic, the main equity indices ended significantly in the green, like the Dow Jones (+1.00% to 32,717 points), and the Nasdaq Composite (+1.79% at 11,926 points). The S&P 500, benchmark barometer of risk appetite in the eyes of fund managers, gained 1.42% to 4,027 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 $1.0830. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $73.50.

To follow in priority on the macroeconomic agenda this Thursday, the final data of the American GDP in the fourth quarter at 2:30 p.m. and a speech by J Yellen, Secretary of the Treasury, at 9:45 p.m.

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). The red body Monday 03/27, admittedly thin, contained in the body of the red candle of the previous session, relativizes the durability of the technical reaction in progress, just like the volumes observed, weak. In the immediate future, a rebalancing of the forces present is underway.

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 / 7740.00
Medium(s):
7000.00 / 6888.00 / 6740.00

Hourly data chart

Graphic made from the software Prorealtime

Chart in daily data

CAC 40: Speech by Yellen and PCE prize on the menu for the last part of the week (© ProRealTime.com)
Graphic made from the software Prorealtime



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