(News Bulletin 247) – Investors are waiting for a lot of news today. First of all on the macroeconomic level, they will take into consideration the latest news coming from Japan. Indeed, the Bank of Japan has decided to allow yields on 10-year Japanese government bonds to exceed 1%. The BoJ kept its policy rate at minus 0.1%, but raised its inflation forecast, saying it expected core inflation of 2.8% for fiscal year 2024, instead of its previous forecast of 1.9%. Additionally, news from China weighed on pre-opening data in Europe. China’s manufacturing activity contracted in October. The country’s official manufacturing purchasing managers’ index was 49.5 this month, up from 50.2 in September. Investors are now waiting for the publication of inflation and GDP for the euro zone at 11:00 a.m. On a microeconomic level, publications within the Cac40 will accelerate in the coming hours. We are expecting communications in particular from Bouygues, Stellantis and Thalès. Some big names are also expected in the United States such as AMD or Caterpillar.
KEY GRAPHIC ELEMENTS
Technically the index is stabilizing at 6800 points. As long as last week’s lows continue to be defended by buyers we can position ourselves to buy to aim for a rebound to 7000 points.
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 6796.21 points.
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