(News Bulletin 247) – On Friday, as for each of the sessions of the past week, the CAC 40 index closed far from its high points of the session, by grabbing 0.21%) 7,230 points, in timid volumes, the operators showing themselves to be versatile as the Jackson Hole symposium opened, a traditional high mass for the world’s moneymakers.

Jerome Powell did not change his speech or reserve any big surprises during his opening speech at the symposium. The chairman of the Federal Reserve (Fed) US estimated that although it has passed its peak, inflation in the United States “remains too high”. However, hopes of a rate cut by the end of the year have clearly been dashed.

“We stand ready to raise rates further if necessary, and we intend to keep our policy restrictive until we are confident that inflation is sustainably approaching our target,” the banker continued. central, assuring that the Fed maintained its objective of 2% inflation.

In terms of statistics, two disappointments should be noted: the IFO business climate index in Germany and the American consumer confidence index (U-Mich in revised data), both below expectations. Regarding the first, the index fell more sharply than expected, to 85.7, the lowest since October 2022. The matrix tool developed by the IFO, called “IFO economic cycle clock”, shows, in its dynamic, a movement towards the so-called “crisis” zone.

In terms of values, JCDecaux stood out, taking 3.2% thanks to an increase in the recommendation from Deutsche Bank to “buy” against “hold” previously. Nanobiotix gained 7.1% as Jefferies resumed long hedging on the stock.

On the other side of the Atlantic, the main equity indices closed Friday’s session in the green, like the Dow Jones +0.73% to 34,346 points) or the Nasdaq Composite (+0, 94% at 13,590 points). The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, groaned 0.67% to 4,405 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 $1.0820. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around $79.60.

On the agenda this Monday, to follow the M3 money supply in the Euro Zone at 10:00 am. Note the closing of the London Stock Exchange on Monday, a public holiday.

KEY GRAPHIC ELEMENTS

From August 10 to 18, the tricolor flagship index melted from one terminal to the other of the vast flattened rhombus (diamond) which has concentrated its nervous oscillations since May 24, breaking the line of neckline of a bearish chart pattern at 7,250 points. A continuation of the oscillations within the diamond is envisaged. Any exit from the latter will give a directional direction provided that volumes, and a sectoral federation, are there… Signs of fatigue within this diamond are already perceptible. The bearish engulfing August 24, at the midline of the diamond, is one.

FORECAST

In view of the key graphic factors that we have mentioned, our opinion is positive on the CAC 40 index in the short term.

This bullish scenario is valid as long as the CAC 40 index is above the support at 7084.00 points.

The News Bulletin 247 board

CAC 40
Positive
Resistance(s):
7500.00 / 7585.00 / 7740.00
Medium(s):
7084.00 / 7015.00 / 6885.00

Hourly data chart

Graphic made from the software Prorealtime

Chart in daily data

CAC 40: Diamond figure still valid (©ProRealTime.com)
Graphic made from the software Prorealtime

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