CAC 40: LVMH featured in Paris

(News Bulletin 247) – The French index should be carried at the opening by the good publication of the French giant LVMH. In fact, the group achieved sales of 21 billion euros in the first quarter of 2023, up 17%. In addition, “Sephora achieved an exceptional performance over the quarter and continues to gain market share”, underlines LVMH. The luxury segment should benefit from these good comments. Hermès International is due to publish tomorrow. On the macroeconomic level, consumer prices, ie the CPI, in the United States slowed more than expected in March over one month and on an annual basis. Consumer prices stood at 5% year on year in March after rising 6% in February, corresponding to the weakest year-on-year increase since May 2021. In other good news, Chinese exports increased by 14.8% in March, thus invalidating the forecasts of economists who had expected a sharp contraction. On the side of the FOMC minutes, also published yesterday, the members of the committee anticipate that the American economy could fall into a “mild recession” later in the year 2023. An announcement which militates for a slowdown or even the end monetary tightening via key rates. No break for macroeconomics, with the publication today at 2:30 p.m. French time of producer prices and weekly jobless claims in the United States.

KEY GRAPHIC ELEMENTS

Technically, the Parisian index should retest its historic highs. The main objective of the operators is the rallying of 7500 points in the next sessions. The trend remains bullish. Pullbacks are opportunities to position yourself in the trend. We will make sure to let the index open in a bullish gap and then monitor the declines towards 7300 points to return to the purchase.

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.

Hourly data chart

Chart in daily data