(News Bulletin 247) – This article, with open access, is produced by the stock market analysis and strategy research team at News Bulletin 247. To ensure you don’t miss any opportunities, consult all the analyzes and discover our portfolios by accessing our Privileges area.
The CAC 40, the flagship equity index of the Paris market, managed to gain 0.71% on Thursday, to 7,665 points, in the immediate vicinity of its zeniths, even though Crédit Agricole (-5.21%) returned a copy. disappointing quarterly. Société Générale (-0.97%), which also published, received a less frosty reception, its accounts having on the contrary been a little better than expected in the fourth quarter.
The results of its two banking heavyweights were all the more awaited as the ordeal had been difficult to say the least for BNP-Paribas last week.
The debates were thus largely dominated by corporate publications. In addition to the two banks mentioned, it is Kering, which against all expectations closed at the top of the CAC 40 this Thursday (+4.9%), having published a decline in its revenues slightly less strong than expected in the fourth quarter and announced investments to relaunch its flagship brand Gucci. The luxury group is closely followed by Unibail-Rodamco-Westfield which gained 4.75% after announcing the return to a dividend this year for 2023.
On the statistical side, weekly registrations for unemployment benefits in the United States showed no significant deviation from the target, at 218,000 new units. A figure which shows if it was still necessary the persistence of the tensions which still exist on private employment in the United States. The latest NFP (Non Farm Payrolls) report, published last Friday, was eloquent on this point. So much so that he single-handedly ironed the Treasuries 10 years above the 4% mark. The door to a first rate cut in March is indeed closed.
On Wednesday, several Fed executives put forward a militant argument for a calm attitude, without urgency for the start of monetary easing. Once this relaxation has begun, there is no reason to adopt a frantic pace of loosening the tap.
On the other side of the Atlantic on Thursday, not only did the main equity indices manage to resist the temptations of profit-taking, but they symbolically finished in the green, like the Dow Jones (+0.13 % at 38,726 points) or the Nasdaq Composite (+0.24% at 15,793 points). The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, gained 0.06%, just a hair’s breadth from the symbolic 5,000 points.
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 $1.0780. The barrel of WTI, one of the barometers of the appetite for risk on the financial markets, was trading around $76.20.
On the agenda this Friday, to follow as a priority the level of Italian industrial production at 10:00 a.m.
KEY GRAPHIC ELEMENTS
The bevel (wedge) which had predominated until then was broken in its momentum by the formation of a large gap and an increase in gains during the session itself on Friday January 26. A major challenge now awaits the CAC: the creation of a series of absolute records. To do this, the participation of the luxury and spirits sectors alone would be insufficient.
In the immediate future, taking a breather from the lessons is the preferred option during this last part of the week. With a close eye on the stocks that have climbed the most since mid-January. (LVMH, Hermès, Teleperformance, CapGemini, Safran and Publicis).
A first divergence between price and RSI, between the last two high points (14/12 and 31/01) becomes clear.
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 7695.00 points would revive the buying tension. While a break of 7406.00 points would restart the selling pressure.
News Bulletin 247 advice
Hourly graph
Daily Data Chart
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
