CAC 40: Sartorius and American inflation cool the markets

(News Bulletin 247) – After several rebound sessions, investors must digest bad news. First of all on the macroeconomic level, after the higher figures for producer prices published the day before yesterday, the figures for consumer prices, called CPI, also came out higher than expected and worried investors. Indeed, the resurgence of inflationary tensions implies continued monetary tightening. The American indices therefore legitimately consolidated after this announcement. This afternoon at 3:00 p.m. the president of the European Central Bank will speak and then at 4:00 p.m. the Michigan consumer confidence index will be published across the Atlantic. On the microeconomic level Sartorius has just warned about its results and should therefore weigh on the trend today. The group is lowering its revenue and adjusted profit margin forecasts for the full year. Fortunately Fastenal in the United States reassured investors yesterday: the group exceeded profit estimates for the third quarter thanks to increased demand. Today before the opening of Wall Street, American banks will get the ball rolling for this season of results publications which extends over three weeks. Citigroup, JPMorgan Chase and Wells Fargo will reveal their third quarter accounts.

KEY GRAPHIC ELEMENTS

Technically the Parisian index has just failed at the resistance of 7200 points as mentioned yesterday. Back on the upper limit of the gap opened this week, very short-term buying reactions could appear. If the gap were to be filled, the chances of a continuation of the downward trend towards 7000 points will be high.

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 6885.00 points.

Hourly graph

Daily Data Chart