CAC 40: Microsoft and Visa reassure the market

(News Bulletin 247) – The first Gafams have published their results and should help to warm up the atmosphere on the markets as the Vix index, also called the fear index, falls once again below the threshold of 20. Indeed, yesterday evening, after the close, Microsoft announced results significantly better than expectations driven by cloud computing. growth in this segment accelerated compared to the first half. The group’s net profit stood at $22.3 billion, up 27% year-on-year. Visa also reassured investors but Alphabet disappointed particularly in its cloud computing segment, unlike Microsoft. In France we will closely follow Worldline which lowers its forecasts, Kering which announces a slowdown and Michelin which adjusts its objectives upwards. Dassault Systèmes is revising its earnings per share (EPS) forecast upwards for 2023. The group announced faster than expected growth in its turnover in the third quarter. On the macroeconomic level, many meetings await the investors today with in particular at 10:00 a.m. the business climate index in Germany, the Ifo. This afternoon at 2:00 p.m. we will receive the figures for American building permits then the sales of new homes. Finally, this evening, we will first listen to the president of the European Central Bank and finally Jerome Powell, the American central banker.

KEY GRAPHIC ELEMENTS

Technically the index is still in its rebound phase but should find the first obstacles in its path today. Indeed, the symbolic price level of 7000 points as well as the 20 bearish period moving average should contain buyers. We will remain buyers in the short term as long as the index preserves 6800 points and we will be cautious in the event of contact with the moving average at 20 daily periods.

FORECAST

Considering the key graphical 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 trading above support at 6885.00 points.

Hourly graph

Daily Data Chart