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With the support of a confirmation of a slowdown in inflation, particularly in Germany, the CAC will have had a positive session on Thursday (+ 1.06% to 7,263 points), against a backdrop of ebbing fears surrounding the sector banking. The flagship Parisian index has thus completely filled the remainder of the bearish gap of March 10.

In Spain, price dynamics have clearly calmed down. Inflation slowed more than expected in March to 3.3% year on year in March after 6% in February. In Germany, the rise in prices slowed to 7.8% over one year after 9.3% in February, in harmonized data which serves as a reference for the European Central Bank.

It will be the turn of the PCE prizes (personal consumption expenditures) to be unveiled this Friday. This is the Fed’s go-to gauge of price momentum, expected to slow to 0.4% in February from 0.6% in January. Meet at 2:30 p.m.

Moreover, the soundness of the banking system continues to attract 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, weekly registrations for unemployment benefits once again came out below the 200,000 new units mark, illustrating, if more was needed, the tensions on the job market across the Atlantic. On the other hand, the American GDP in Q4 was readjusted slightly downwards, to +2.6% compared to Q42021.

On the stock side, technology, banking and automotive equipment fully participated in the rebound of the day, like Societe Generale (+3.20% to 20.77 euros), Faurecia (+3.84% to 19 .97 euros), or Soitec (+4.04% to 145.40 euros).

On the other side of the Atlantic, the main equity indices gained a few points on Thursday, like the Dow Jones (+0.43% to 32,859 points) or the Nasdaq Composite (+0.73% to 12,013 dots). The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, gained 0.57% to 4,050 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. A barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $73.50.

To be followed in priority on the macroeconomic agenda this Friday, PCE prices at 2:30 p.m.

KEY GRAPHIC ELEMENTS

Symbolically, the CAC quickly erased the remainder of the March 10 gap during Thursday’s session, retracing all the losses suffered since the start of the banking crisis. A rapid drop below 7,225 points would augur a second episode of correction, while staying above would rhyme with a commitment to a consolidation phase below the peaks.

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 7422.00 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):
7422.00 / 7500.00 / 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: FOMO is not dead (©ProRealTime.com)
Graphic made from the software Prorealtime



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