CAC 40: Good news from Asia

(News Bulletin 247) – American indices once again set historic records yesterday during the session while the chances of a rate cut next March are fading. In fact, the probability of seeing this first rate cut from the American central bank in March is now less than 50%. If the technological compartment is responsible, semi-conductors in the lead, for the rise in indices, the positive openings to come today in Europe are linked to good news from Asia. Indeed, Beijing is trying to wake up its market, while the trend is strongly downward, valuations historically low, and capital flows anemic. Li Qiang, Premier, relayed information that Beijing should inject funds into capital markets. Additionally, China’s video game regulator has withdrawn proposed regulations proposing to control player spending. Compartment stocks like Tencent are regaining color. Furthermore, further east, early this morning we learned that the Bank of Japan was maintaining its accommodating monetary policy after having revised downwards its inflation outlook for the coming fiscal year. On a microeconomic level, United Airlines just released its results and said it experienced its “busiest travel period in history” at the end of December. However, the group warned that the recent grounding of its Boeing 737 MAX 9 fleet would result in a larger adjusted loss in the first quarter. Today in the United States, Netflix, Johnson & Johnson and Verizon and Texas are expected to be released. Instrument. In France, we will closely follow Nacon, Pierre & Vacances and Compagnie des Alpes.

KEY GRAPHIC ELEMENTS

The Parisian index, as expected, held its support at 7,400 points at the close. The index should continue its rebound today. A close above the 20-period moving average would constitute a signal of strength from buyers, unlocking upside potential towards 7600 points. As every morning for several days, any decline to the 50-period moving average remains a short-term buying opportunity.

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