(News Bulletin 247) – Operators remain positive as the French index closed at its highest since January 5, 2022, at 7,390.28 points, after hitting an absolute record during the session at 7,403.67 points. The index was buoyed by news from China with lower than expected inflation. Cyclical stocks such as Schneider Electric, Saint Gobain and Renault were well oriented, as was the luxury segment after the announcement of measures by the Chinese central bank. Investors will now turn their eyes to the US inflation figures released today at 2:30 p.m. French time. The consensus anticipates inflation at 5.6% over one year. Operators will then wait at 8:00 p.m. French time for the publication of the FOMC minutes. In addition, the IMF has adjusted its growth forecasts downwards, with a forecast of less than 3% growth now, and recalled that in most countries, inflation should not return to its target level before 2025. Finally, the LVMH group will kick off the first quarter earnings season after the close tonight. According to the FactSet consensus, the group should post 20 billion euros in turnover, or 2 billion more than a year ago.

KEY GRAPHIC ELEMENTS

Technically, the entry of new records demonstrates the presence of a buying force that should not weaken, especially with all the well-oriented compartments within the index. We will therefore take advantage of the downturns to position ourselves in the direction of the trend and aim for new records and in particular the next resistance zone: the 7500 points.

FORECAST

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

This bullish scenario is valid as long as the CAC 40 index is above the support at 7234.00 points.

The News Bulletin 247 board

CAC 40
Positive
Resistance(s):
7400.00 / 7500.00
Medium(s):
7234.00 / 7015.00 / 6885.00

Hourly data chart

Graphic made from the software Prorealtime

Chart in daily data

CAC 40: New records before US inflation (©ProRealTime.com)
Graphic made from the software Prorealtime



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