CAC 40: Neutrality before LVMH and the ECB

(News Bulletin 247) – Busy day on the macroeconomic level for investors. Indeed, from 10:00 a.m. operators will follow the IFO business climate index in Germany. Then the information will come one after the other in a frenzy. Indeed, the European Central Bank (ECB) will announce its monetary policy decision at 2:15 p.m. French time. Then it is the American macroeconomic data which will take over with orders for durable goods, weekly unemployment registrations, Gross Domestic Product (GDP) as well as building permits. Finally at 4:15 p.m. Christine Lagarde will speak. Regarding the European Central Bank, investors expect the status quo today. They will listen carefully to the words selected by Christine Lagarde to detect the start date of the rate cuts. Indeed, at this stage investors are betting on the month of June for the first rate cut. The PMI indicators appeared to be contracting yesterday in Europe while in the United States they are expanding and some even beat the consensus, again predicting a possible overheating of the American economy. Today, we expect many results in France, notably LVMH this evening after the close. We will also closely follow ST Microelectronics, Alten and Maison du Monde. Last night it was Tesla who was in the spotlight. The group said sales growth for its electric vehicles would be “significantly weaker” this year than in 2023. Revenue rose 3% to $25.2 billion, weak growth from to his latest publications.

KEY GRAPHIC ELEMENTS

The index returns above its 20-period moving average but does not exceed recent highs. The index is therefore neutral in the short term. A close above 7480 points would give buyers an advantage again while a new close below 7400 points would imply a significant drop towards 7200 points.

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 crossing 7585.00 points would revive the buying tension. While a break of 7406.00 points would restart the selling pressure.

Hourly graph

Daily Data Chart