(News Bulletin 247) – Paris is expected to fall sharply on Thursday the day after the outcome of the Fed’s FOMC. If, as widely expected, no hike in federal rates was on the agenda – the tap will start to be tight in March -, Mr J. Powell remained evasive in distilling the calendar indices on the rate of rise of the Fed Funds in 2022. In the end, it was impossible for the operators to refine the number of increases (3? 4? 5?). Wall Street will finally have lost its accumulated gains in session to end in equilibrium.
At the same time, Russian military maneuvers on the Ukrainian border continue to fuel a climate of tension, even as negotiations between Russian, Ukrainian, French and German diplomats continue.
In terms of statistics on Wednesday, very little to get your teeth into except for a slightly stronger than expected widening of the monthly trade deficit in the United States for the month of December.
In terms of values, Renault again posted the largest increase (+5.9%) on the eve of the presentation of the ambitions of the group and its partners Nissan and Mitsubishi in the electric market. Stellantis, which had for its part chained six sessions of decline, rose by 4.9%. Apart from the emblematic automotive sector, other Value files were sought after, such as Airbus (+5.43% to 114.22 euros), TechnipFMC (+6.78% to 6.112 euros) or Imerys ( +7.40% to 41.22 euros). Seb jumped 6.63% to 133.40 euros, after publishing a surge in quarterly sales.
On the other side of the Atlantic as seen in the preamble, the main equity indices on Wednesday lost all the gains made during the session to end at levels close to balance, like the Dow Jones (-0, 38% to 34,168 points) or the Nasdaq Composite (+0.02% to 13,542 points). The S&P 500, the benchmark barometer of risk appetite in the eyes of fund managers, fell 0.15% to 4,349 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 1,1220$. The barrel of WTI, one of the barometers of risk appetite in the financial markets, was trading around 86,60$.
To follow on the agenda this Thursday, as a priority, the very first estimates of annual GDP in the United States at 2:30 p.m., as well as orders for durable goods and weekly registrations for unemployment benefits, still across the Atlantic, at the same time.
KEY GRAPHIC ELEMENTS
An oblique line of support gave way yesterday under the sectorally federated assaults of the selling camp, in a very high level of participation. This release of selling energy at this stage, in a single session, constitutes a major technical fact which characterizes the hypersensitivity of a market which is increasingly and continuously questioning the levels of valuation of shares. Entry into bear market is not formally characterized, but the situation calls for the greatest vigilance under this oblique.
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 7000.00 points.
Hourly data chart
Chart in daily data
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Source: Tradingsat
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