CAC 40: Publicis takes over

(News Bulletin 247) – After a hectic session with the publication of the luxury giant LVMH, investors will take a breath and welcome the results of Publicis today. To find additional catalysts we will have to turn to the United States where we are awaiting the publication of inflation figures through the CPI indicator. Moreover, yesterday the publication of production inflation data, called PPI, came out higher than expectations and therefore was bad news since inflation on production chains is still beyond expectations. Separately, Fed minutes showed that members are likely to pause the monetary tightening cycle that began in March 2022. However, a majority of 12 to 7 officials indicated in new forecasts that a hike Additional rates may be needed by the end of the year to bring inflation closer to the 2% target. Still on the macroeconomic level, we await the minutes from the ECB at the beginning of the afternoon. On the value side, we will monitor Publicis which will announce its turnover, and we will pay attention to the behavior of Stellantis after the group’s announcement of an investment alongside Rio Tinto in a copper company in Argentina. Across the Atlantic Microsoft could lead the trend as the group is being asked for $28.9 billion in back taxes by the American tax administration. The American automobile sector should also be lively as the number of strikers in the sector now reaches 34,000 people.

KEY GRAPHIC ELEMENTS

Technically the Parisian index is still in a downward trend as long as it moves below 7200 points. In the very short term in intraday data the index can rebound from this week’s bullish gap. The filling of the latter would trigger a new wave of sales bringing the index below 7000 points.

FORECAST

Considering the key graphical 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 below resistance at 7200.00 points.

Hourly graph

Daily Data Chart