(News Bulletin 247) – This article, in free access, is produced by the stock market analysis and strategy research team of News Bulletin 247. To not miss any opportunity, consult all the analyzes and discover our portfolios by accessing our Privileges area.
Little difference once again to report between the opening and closing level, Wednesday, on the CAC index, which ended up very slightly up 0.21% to 7,549 points, close to its historic highs . A healthy-looking consolidation at the dawn of a corporate earnings season that is taking on a very special color as inflation is only just beginning to show signs of decelerating.
The pace of publication of corporate results will clearly accelerate in France with this Wednesday, EssilorLuxottica, Renault and Edenred. Note the excellent quarterly copy published by L’Oréal yesterday after the market.
On the value side, OVHcloud lost 8.95% to 10.38 euros after having published lower than expected profitability for its first half and having lowered all of its objectives for the current financial year. Worldline limited its growth to 0.9% after having gained nearly 8% at the opening, driven by the announcement of negotiations with the bank Crédit Agricole to create a joint venture specialized in the provision of payment services to merchants In France.
The market needs clarification: it needs to measure, at this stage, the consequences of a firm monetary policy, the cycle of which at least in Europe is not complete, on economic activity, while being waiting for clear confirmations of a slowdown in price increases.
The market is also surfing on the very reassuring figures on US inflation, published last week. “These publications should therefore encourage the Fed to raise its key rates by a final 25bp. [points de base] in May before taking a break”, 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.”
On the other side of the Atlantic, the main equity indices ended Wednesday’s session in scattered order, close to balance, like the Dow Jones (-0.23% to 33,897 points) and of the Nasdaq Composite (+0.03% to 12,157 points). The S&P500, the reference barometer of risk appetite in the eyes of fund managers, stabilized at 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 $1.0970. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $79.60.
To follow as a priority on the macroeconomic agenda this Thursday, the weekly registrations for unemployment benefits across the Atlantic and the manufacturing index of the Philadelphia Fed at 2:30 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. In the immediate term, a continuation of a healthy flat consolidation phase is envisaged.
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
Hourly data chart
Chart in daily data
function creatOutbrainJs() {
const creatJs = document.createElement(“script”);
creatJs.defer = true;
creatJs.src = “https://widgets.outbrain.com/outbrain.js”;
return document.body.appendChild(creatJs);
}
window.didomiOnReady = window.didomiOnReady || [];
window.didomiOnReady.push(function(Didomi) {
console.log(“Didomi ready “);
Didomi.getObservableOnUserConsentStatusForVendor(164)
.filter(function (status) { return status !== undefined })
.subscribe(function(consentStatus) {
if (consentStatus === false || consentStatus === true) {
console.log(“Didomi consent -> exécution du script outbrain “, consentStatus);
creatOutbrainJs()
}
});
});
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
