(News Bulletin 247) – Without grimacing, the financial markets welcomed the US inflation figures yesterday, certainly close to expectations. Excluding food and energy (elements considered volatile), prices rose in December by 0.6%, against a target of +0.5%. Not enough to disturb the trading rooms, however: government bond yields continued their downward movement, towards 1.725. Movement initiated yesterday with the intervention of firefighter Powell. It must be said that the rate of monthly rise in prices confirms its tendency to slow down. Remember that in May and July, on the same basket of products, the monthly increase was 0.8%. Asked by the Senate on Tuesday about the institution’s strategy to fight inflation in the United States, J Powell “promised to do everything possible” during his second term to fight against rising consumer prices. . The latter reaching, over one year, excluding food and energy, 5.5%…
On the value side, Rexel jumped 10.32% to 20.85 euros after signaling that its 2021 performance would exceed the targets, however, revised upwards during the year. OVHCloud gained 4.56% to 25.58 euros on the announcement of double-digit growth, beyond expectations, in its revenues in the first quarter of its 2021-2022 financial year. The continued increase in oil prices supported the price of TotalEnergies (+3.07% to 49.06 euros), the second largest increase in the flagship index after ArcelorMittal (+6.50% to 32.59 euros). ). Conversely, some files on the real estate sector marked time, under the effect of profit taking, like Carmila (-3.11% to 14.34 euros), Klepierre (-3.30% to 22.29 euros), or Nexity (-4.47% to 38.88 euros).
On the other side of the Atlantic, the main equity indices ended Wednesday’s session in the green, however far from their respective session highs, like the Nasdaq Composite (+0.23% to 15 188 points) or the Dow Jones (+0.11% to 36,290 points). The S&P 500, the benchmark barometer of risk appetite in the eyes of fund managers, slid 0.28% to 4,726 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 1,1440$. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around 82,40$.
To follow on the agenda this Thursday, as a priority, Italian industrial production at 10:00 a.m., as well as the producer price index and weekly registrations for unemployment benefits across the Atlantic at 2:30 p.m. For a full view of the agenda, go here.
KEY GRAPHIC ELEMENTS
the trend is not threatened at this stage, but it is clear that the losses on Wall Street last week had repercussions in Paris, in the form of one-off and targeted profits in Paris, profit taking whose magnitude must be considered in the light of initial progress, file by file. All the same, we remain well above a bullish slant and the 100-day moving average (in orange), benchmarks which gradually tend to merge, and which will therefore gain in technical significance. We are leaning towards the scenario of a price approach to this support level.
PREVISION
In view of the key graphic factors that we have mentioned, our opinion is negative on the CAC 40 index in the short term.
This bearish scenario is valid as long as the CAC 40 index is trading below the resistance at 7390.00 points.
Hourly data chart
Chart in daily data
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Source: Tradingsat
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