CAC 40: American inflation on everyone’s minds

(News Bulletin 247) – The American indices, led by the magnificent seven, continued their rebound. Nvidia continues to carry the Nasdaq with recommendations from analysts chasing the market, notably UBS which once again recommends the stock for purchase. Furthermore, investors welcomed the decision of the American stock market watchdog, the SEC, for Securities and Exchange Commission, to approve the launch of exchange-traded funds, also called ETFs, backed by Bitcoin. The SEC has approved Bitcoin ETFs from BlackRock, Ark Investments and 21Shares, Fidelity, Invesco and VanEck in particular. On the macroeconomic level, crucial day for investors and for all assets, with the publication of data on consumer prices, also called CPI, for the month of December in the United States. As a reminder, if inflation were higher than expected, investors would then have to reduce their expectations of rate cuts for the year, a negative scenario for the equity compartment. In France, on the microeconomic level we will closely follow Nexity, which announced that it had won the call for tenders launched by Orange, for the real estate management of its assets in Ile-de-France and the South-East.

KEY GRAPHIC ELEMENTS

Technically the Parisian index is still on its support of 7400 points. As long as the support is defended at the close, we can continue to position ourselves for purchase in this zone to initially aim for a return to the 20-period moving average in daily data. A break of 7400 points would generate bearish releases bringing prices back towards 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