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The CAC 40 index, rather well oriented throughout the session on Tuesday, will have accelerated its rise shortly after 4 p.m. and the publication of new job offers (JOLTS) in the United States, the first statistic of a long series. this week, under the sign of employment (ADP survey, weekly registrations for unemployment benefits, and NFP report). At the end of July the number of job vacancies stood at 8.830 million, according to data from the US Labor Office, a decrease of 338,000 units over one month. Economists polled by MarketWatch were expecting a figure of 9.490 million. This is a first tangible sign of relaxation on the employment front, which has been chronically in high tension for many months. Remember that the degree of employment tension is an essential element for the Fed in the construction of its monetary policy.

Bond yields, moreover, saw their evolution firmly anchored in the red following the publication of vacancies in the United States. The rate of the 10-year US Treasury bond fell to 4.157% against 4.204% on Monday evening. What significantly relieve the Nasdaq Composite, which jumped 1.74% to 13,943 points. Still across the Atlantic on the equity index side, the Dow Jones gained 0.85% on Tuesday to 34,852 points. The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, gained 1.45% just a few points off 4,500.

The values ​​of the CAC 40 almost all ended in the green, with the exception of a handful of defensive stocks such as Danone (-0.2%), Thales (-0.37%) or Edenred (-0.54% ). Against the trend Carrefour dropped 4.55% to 17.405 euros, the market seeming to react with some latency to the last Kantar panel reporting a decline in the distributor’s market share in France. All against a backdrop of controversy in Brazil: According to the local media “Reporter Brasil”, a supplier of the group, very established in Brazil, gets its supplies from an agricultural livestock company accused of deforestation.

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 $80.20.

On the agenda this Wednesday, to follow as a priority, at 2:30 p.m., on the American side, the results of the ADP employment survey, the opportunity to confirm or refute the message sent by the JOLTS yesterday. Also to follow at the same time are the preliminary US Q2 GDP data.

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 direction provided that volumes, and a sectoral federation, are there…

Signs of fatigue within this diamond are already noticeable. The bearish engulfing August 24, at the midline of the diamond, is one.

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 7500.00 points would revive the tension in the purchase. While a break of 7084.00 points would relaunch the selling pressure.

The News Bulletin 247 board

CAC 40
Neutral
Resistance(s):
7500.00 / 7585.00
Medium(s):
7084.00 / 7015.00

Hourly data chart

Graphic made from the software Prorealtime

Chart in daily data

CAC 40: Week under the sign of American employment (©ProRealTime.com)
Graphic made from the software Prorealtime

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