(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.
Very good last session of the first half for the CAC 40, which in the wake of Wall Street and the publication of PCE prices, gained height (+ 1.19%), until registering in session an unprecedented high point since May 23.
“Risky assets, driven by signs of resilience in US activity, are resisting the rise in bond yields”, summarizes Jeanne Asseraf-Bitton, Head of Research and Strategy BFT IM, who notes in particular “signs of improvement in real estate, equipment orders (investment proxy) up moderately and Q1 GDP revised up to +2% (annualized Q/Q) However, consumption stalled in May. businesses picked up in June and household sentiment improved with employment expectations The consumption deflator slowed more than expected to 3.8% per year in total but barely decelerated to 4.6% per year excluding food and energy (Fed target measure).”
Last week will indeed have concentrated major benchmarks, whose targets will have been significantly exceeded. These include the Conference Board of consumer confidence, durable goods orders and the manufacturing index of the Richmond Fed.
The personal consumption index for the month of May showed a monthly increase of 0.3%, in line with expectations. On this side of the Atlantic, retail prices rose by 5.4% at an annualized rate, compared to a consensus of 5.5%, according to a rapid estimate published by Eurostat, the statistical office of the European Union. The Institute also published the unemployment rate in the monetary union, stable at 6.5%. Compared to May 2022, unemployment fell in volumes and by 227,000 in the euro area.
In terms of values, Engie appreciated 1.5% after having already gained 4% on Thursday. The energy group raised its earnings forecast for the 2023 financial year thanks to the good performance of its GEMS (Global Energy Management & Sales) activity, its energy asset trading, supply and risk management division. The day before, the group had been carried by its agreement with Belgium on the extension of two nuclear reactors. An agreement which has the virtue of giving visibility to the group on the cost of processing nuclear waste. Societe Generale advanced 1.1%, benefiting from a change in recommendation from Deutsche Bank which went from “buy” to “hold” on the stock.
On the other side of the Atlantic, the main equity indices rose significantly on Friday, like the Dow Jones (+0.84% to 34,407 points) and especially the Nasdaq Composite (+1.45% to 13,787 dots). The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, gained 1.23% to 4,450 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 $1.0890. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $70.70.
On the agenda this Monday, to follow in priority a battery of industrial PMI activity indicators for the month of June (synthetic data for the Euro Zone at 10:00 a.m.) and the American ISM manufacturing PMI at 4:00 p.m.
KEY GRAPHIC ELEMENTS
The weekly candle of the past week shows the relief of a financial community which is witnessing concomitantly a soft-landing of the US economy, with no new unpleasant surprises on the inflation front. The next resistance levels are located at 7,500 then 7,585 points.
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 7410.00 points would revive the tension in the purchase. While a break of 7088.00 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.
