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Building on a series of finally encouraging quarterly corporate results, and on encouraging American inflation dynamics, the CAC 40 reacted well for the last session of the week, gaining 1.22% to 7,517 points.
Luxury giant Hermès (+3.39%) lived up to its status as a good student in luxury, while publications by Essilorluxottica (+7.39%), Vinci (+3.45%), Valeo (+8.49%) and Saint-Gobain (+4.22%) also found favour with investors.
In the statistical chapter, PCE prices (personal consumption expenditures) are at +0.2%, slightly slowing down, excluding food and energy. On an annual basis, it stood as expected, at 2.5% over one year, after 2.6% in May, according to the index which is the preferred inflation indicator of the American Federal Reserve (Fed). Furthermore, if the monthly spending of Americans does not surprise (therefore does not deviate from the consensus), their income (+0.2%) is below the target (+0.4%). Nothing to report on the revised data of the consumer confidence index (U-Mich), which came out in initial estimates at 66.0, very close to expectations.
On the other side of the Atlantic, the main stock indices ended Friday’s session in the green, like the Dow Jones (+1.64%) and the Nasdaq Composite (+1.03%). The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, rose 1.11% to 5,459 points.
An update on other risky asset classes: around 8:00 this morning on the foreign exchange market, the single currency was trading at a level close to $1,0860. The barrel of WTI, one of the barometers of risk appetite on financial markets, was trading around $77.30.
On the agenda this Monday, there are no major indicators to report. The agenda will get denser tomorrow, in particular with the confidence index (Conference Board) of American consumers.
KEY GRAPHIC ELEMENTS
The leading index of the Paris market has broken the graphic level of 7,465 / 7,500 points, a floor weakened since June 14. The selling energy released is significant, in light of the inability to fill the opening gap, and in light of the increasing transaction volumes. The message delivered is negative. For the time being, the index remains magnetized by the 7,465 points.
FORECAST
Considering the key graphic factors that we have identified, our opinion is neutral on the CAC 40 index in the short term.
It should be noted that a crossing of 7690.00 points would revive buying tension. While a break of 7200.00 points would revive selling pressure.
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