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Reassured by the figures for Chinese GDP in the first quarter, the CAC 40, with the support of luxury, managed to grab 0.47% to 7,533 points, after registering new historic highs during the session. Chinese GDP in the first quarter, published overnight, (+4.5% at an annual rate) far exceeded expectations. To be statistically complete, the German ZEW Economic Confidence Index contracted very heavily, completely missing expectations, to 4.1.

The market continues to surf on the very reassuring figures on US inflation, published last week. “These publications should thus encourage the Fed to raise its key rates by 25 bp in May before pausing,” anticipates Thomas Giudici, head of bond management at Auris Gestion.

“The risk of monetary tightening being less significant, the risks of recession will come back to the fore. The interpretation “bad news is good news” will thus soon lose all its meaning. Despite headwinds which have strengthened, the he US economy, however, is still showing resilience and the statistics still do not show a contraction in activity.”

In terms of values, Bolloré rose by 5.3%, driven by signs of interest from the shipowner CMA CGM for its transport and logistics branch. This potential sale revives speculation a little more on a takeover bid by Groupe Bolloré on Vivendi, which ends at the top of the Parisian index (+6.3%) on Tuesday evening. Luxury stocks are benefiting from positive signals from China: Hermès gained 1.8%, Kering +0.7% and LVMH rose by 0.45%. Excluding the flagship index, Orpea recorded a new rise (+9.3%) while minority shareholders representing more than 5.5% of the capital published a press release to demand the holding of a general meeting and contest the heavy plan of restructuring of the company.

On the other side of the Atlantic, the main equity indices ended Tuesday’s session very close to balance, like the Dow Jones (-0.03% to 33,976 points) or the Nasdaq Composite (-0.04% to 12,153 points). The S&P500, benchmark barometer of risk appetite in the eyes of fund managers, nibbling 0.09% to 4,154 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 $1.0950. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $80.50.

To be followed in priority on the macroeconomic agenda this Wednesday, the consumer price indices in the Euro Zone at 11:00 a.m., the American stocks of crude oil at 4:30 p.m., and the Beige Book of the Fed at 8:00 p.m.

KEY GRAPHIC ELEMENTS

After a “crazy” week, marked by the plotting of a long white weekly candle, of which a good part of the body is made up of successive historical highs, the time has come for the consolidation of the advance, even if the bullish message The bottom line remains intact, as shown by the imminent reconquest of the 50-day moving average (in orange) by its 20-day counterpart (in dark blue). Just like the pursuit gaps visible in the hourly chart.

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 7740.00 points would revive the tension in the purchase. While a break of 7234.00 points would relaunch the selling pressure.

The News Bulletin 247 board

CAC 40
Neutral
Resistance(s):
7740.00
Medium(s):
7234.00 / 7015.00 / 6885.00

Hourly data chart

Graphic made from the software Prorealtime

Chart in daily data

CAC 40: Good news is good news (©ProRealTime.com)
Graphic made from the software Prorealtime



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