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With a very positive weekly balance sheet (+2.70%), barely started by the luxury sector following the warning from the British Burberry, the CAC 40 will have perfectly illustrated the feeling of relief of operators after the publication, on both sides. on the other side of the Atlantic, tangible signals of a slowdown in inflation. The subsequent easing in the sovereign bond market will have supported equities.
“With an inflation surprise of 0.1% in the United States, markets have decided to once again buy into the story of a soft landing with disinflation. The way the US inflation report has caused the markets to take off reflects an adjustment of trend following strategies, but the shock wave was enough to make this week a positive week in all areas. Long rates fell in a ratio of 1 to 1 with expectations regarding monetary policy, which have been revised considerably downwards,” explains Lombard Odier.
On this side of the Atlantic, inflation, in final data for the month of October, was confirmed at +4.2% at an annualized rate excluding volatile elements, according to the latest EuroStat data. The figure is +2.9% including food, energy, alcohol and tobacco. The next publication of the flash estimate of euro area inflation, including data for November 2023, is scheduled for 30 November 2023.
On the value side, Rémy Cointreau gained 4.6% after an increase in recommendation from Kepler Chevreux which moved to purchase on the file. Teleperformance gained 1.3% after raising 1.4 billion euros of long-term bonds, which was oversubscribed more than 5 times.
On the other side of the Atlantic, the main equity indices ended Friday’s session at levels very close to equilibrium, but symbolically in the green: +0.01% to 34,947 for the Dow Jones, +0.08% to 14,125 points for the Nasdaq Composite, and +0.13% to 4,514 points for the S&P500, the reference barometer of risk appetite in the eyes of fund managers.
An update on other risky asset classes: around 8:00 a.m. this morning on the foreign exchange market, the single currency was trading at a level close to $1.0920. The barrel of WTI, one of the barometers of the appetite for risk on the financial markets, was trading around $76.50.
On the agenda this Monday, to follow the index of leading indicators (Conference Board) in the United States at 4:00 p.m.
KEY GRAPHIC ELEMENTS
The 7,200 points, the technical issue of last week, were exceeded, with the weekly candle closing at its peaks. The flagship Parisian index is now entering a phase of digesting its gains, in the form of a consolidation whose graphic pattern is still being determined.
FORECAST
Considering the key graphical factors that we have identified, our opinion is neutral on the CAC 40 index in the short term.
We will take care to note that a crossing of 7406.00 points would revive the buying tension. While a break of 7000.00 points would restart the selling pressure.
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