CAC 40: Indecision before American inflation

(News Bulletin 247) – The French index should open slightly in the red after a session without volatility yesterday. Investors are now opting for short-term neutrality while waiting for US inflation on Thursday. As a reminder, investors estimate a 70% probability of seeing the Fed lower its rates next March. For the European Central Bank (ECB), according to François Villeroy de Galhau, the institution will reduce its interest rates this year when it has noted that the inflation outlook has stabilized in accordance with its objective of 2%. No important statistics are expected today. In addition, the results publication season must begin on Friday, notably with American banks. If macroeconomic news is relatively calm, for the moment, microeconomic news should liven up the Paris market. Indeed, CGG announced its results this morning. The group estimates that its activity turnover should be “around $1.12 billion” in 2023, up 21% year-on-year. Voltalia should also be surrounded after announcing that it had achieved its operational objectives for megawatt capacities. TFF and other European groups, such as Sika and Campari, will be showing in Europe today after revealing their figures.

KEY GRAPHIC ELEMENTS

The Paris index is just above short-term support. This support caused a rebound during the session. Any further decline on the support of 7400 points therefore constitutes a very short-term opportunity to take a buying position to aim for a rebound on the moving average at 20 daily periods. A break at the close of 7400 points would lead to a further bearish deterioration at 7300 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 above support at 7406.00 points.

Hourly graph

Daily Data Chart