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After luxury alone on Wednesday, then automotive and technology on Thursday, it was stocks linked to energy in particular that contributed to the continued decline in the market. Yesterday Engie lost 2.15% to 13.94 euros, Schlumberger 2.19% to 41.96 euros, GTT 2.58% to 92.50 euros, Total Energies 3.27% to 55 euros and Vallourec 3.43 % at 10.29 euros. On the other hand, STMicroelectronis managed to limit the damage (-0.33%), and Soitec to suddenly gain height (+7.74%) in the wake of NVidia (+24.37%), and a note of analyst. In addition, Aramis Auto jumped 13.9% thanks to good half-year results.
The chipmaker, initially a specialist in so-called graphics cards for the video game market, is taking advantage of a tidal wave of demand for semiconductors for programs using artificial intelligence. Hence the prospects that enthused the market during the publication of its staggered quarterly exercise.
In terms of statistics, across the Atlantic, Q1 GDP, in preliminary data, came out at +1.3% from one quarter to the next, beating expectations confined to +1.1%. In addition, weekly registrations for unemployment benefits came out for the past week at 229,000 new units.
The market remains tormented by the American debt file, the negotiations between the Biden administration and the Republican camp in Congress remain infertile, each party denouncing the other for supporting budget proposals that are too radical. In this context, the rating agency Fitch has placed the US “triple A” rating under review. Remember that the US Treasury estimates that the default of payment by the United States could occur as early as June 1. The Democratic executive has, moreover, ruled out resorting to a forced passage by invoking the 14th amendment to the Constitution.
Across the Atlantic, major equity indices ended in mixed order on Thursday, with the Dow Jones contracting 0.11% to 32,764 points, and the Nasdaq Composite jumping 1.71% to 12,698 points, under the ripple effect of NVidia. The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, gained 0.88% to 4,151 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 $1.0730. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $71.80.
To be followed as a priority on the macroeconomic agenda this Friday, across the Atlantic a dense program, with PCE prices, durable goods orders at 2.30 p.m., household income and expenditure and wholesaler inventory levels at 2.30 p.m., as well as the Consumer Confidence Index (U-Mich) at 4:00 p.m. The latter is expected at 58.7 in revised data.
KEY GRAPHIC ELEMENTS
We placed the 7,310 point threshold under close surveillance, which was pushed down, on a wide gap, in high volatility, and in a rising volume level. A short reaction took place at the end of the session from the upper limit of the thin gap of March 30, a level which remains threatened. Next downside target: 7,088 points, before a protest reaction.
Beware of the commitment of a combination in three crows, which would be validated in the event of opening above 7,229 points, and closing below.
FORECAST
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 7585.00 points.
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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.
