CAC 40: An easy digestion of US inflation figures

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(News Bulletin 247) – The Parisian market will have decidedly digested with disconcerting ease the latest figures on US inflation, showing an acceleration in the rise in prices. Yesterday, while the Stock Exchange opened under usual timetable and listing conditions despite the 11/11 holiday character, the CAC managed to grab 0.20% to 7,059 points, in volumes that fell sharply in l absence of a large fringe of operators.

Statistical focal point on Wednesday, the various consumer price indexes showed an acceleration in the rise in prices, which will weigh on the Fed’s strategic thinking.

“Tensions on the global supply chain persist with container ship traffic jams in major ports around the world, which keeps prices under pressure and slows down the flow of components or raw materials. the pressure in certain sectors of activity where companies see production costs rise without fully passing these costs on to the selling price “, summarizes Alexandre Baradez (IG France).

In the end and in detail, over the month of October, and on a monthly basis, consumer prices rose by 0.9%, against 0.6% expected. Excluding food and energy (elements considered the most volatile), prices gained 0.9%, against 0.6% expected according to the latest figures from the Bureau of Labor Statistics. On an annualized basis, headline inflation (the broadest base) stands at 6.2% …

“This inflation report is sure to revive the debate over the timing of the Fed’s rate hikes, with bond markets expecting a first hike in July and a second by year-end. , with a firming of the probabilities of rate hikes following this report “, for Vincent Manuel, Director of Investments at Indosuez Wealth Management.

Among the rare publications of the day in Paris, that of ArcelorMittal allowed the title to rise to the top of the CAC 40 (+ 4.09% to 28.48 euros). Without any particular news, Eurofins Scientific gained 3.6%, almost returning to equilibrium over one month. Engie for its part advanced by 2.3% after the announcement of the takeover, in consortium with a financial partner, Crédit Agricole, of Eolia Renovables, one of the largest producers of renewable energy in Spain. Conversely, Alstom suffered strong profit taking, falling 6.1% the day after a surge of 9.75% and Renault (-4%) was automatically under pressure from the wholesale resale of the entire stake. of Daimler, or 3.1% of the capital.

On the other side of the Atlantic, the main equity indices ended in dispersed order, the Dow Jones showing a decline of 0.44% to 35,921 points, weighted by Disney (-7.07%) and the Nasdaq Composite regaining 0.52% to 15,704 points. The S&P 500, benchmark barometer of risk appetite in the eyes of fund managers, ended Thursday’s session in equilibrium for its part at 4,649 points.

An update on other risky asset classes: around 8 a.m. this morning on the foreign exchange market, the single currency was trading at a level close to 1,1440$. A barrel of WTI, one of the barometers of risk appetite in financial markets, was trading around 80,90$.

To be continued on the statistical agenda this Friday, as a priority, industrial production in the Euro Zone at 11:00 am. Across the Atlantic, two appointments to check: the new job offers (JOLTS) at 4:00 p.m., and the consumer confidence index (U-Mich) in preliminary data, also at 4:00 p.m.

KEY GRAPHIC ELEMENTS

The CAC 40 index, a benchmark barometer, however imperfect it may be, of the Paris Stock Exchange, is regularly registering new absolute highs. After Monday’s bullish gap, a powerful “three advancing white soldiers” structure was formally validated last week. The 5 candles of the week also feature a green body: systematically, the closing exceeded the opening, whatever the opening level compared to the day before. These two observations materialize, combined with the volumes of transactions, a phase of momentum in the process of being expressed. The three shadows on the candles of 05, 08 and 09/11 show a perfectly legitimate breathlessness, but without profit taking. The bodies of said candles are otherwise green. The entry into the breathing phase of the lessons is to be anticipated.

PREVISION

With regard to the key graphic 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 the 7500.00 points would rekindle the purchase tension. While a break of 6960.00 points would revive the selling pressure.

Hourly data graph

CAC 40: An easy digestion of US inflation figures (© ProRealTime.com)

Daily data graph

CAC 40: An easy digestion of US inflation figures (© ProRealTime.com)

©2021 News Bulletin 247

Source: Tradingsat

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