CAC 40: Index consolidation in calm

KEY GRAPHIC ELEMENTS

US indices, particularly the Nasdaq, consolidated yesterday as investors awaited new catalysts since the end of the Jackson Hole symposium. Shares of PDD Holdings, the parent company of the Pinduoduo app, fell nearly 30% yesterday. Revenues were below analysts’ expectations. The company warned of a slowdown in revenue growth in the future “due to increased competition and external challenges.” This information contributed to a gloomy mood among investors. In addition, it was announced that Apple’s CFO, Luca Maestri, will step down early next year, ending a more than decade-long career as the iPhone maker’s CFO. In commodities, oil continued its powerful rally following reports that Libyan production had been halted due to political disputes between its two governments. The North African oil-exporting country has been mired in chaos since the NATO-backed uprising in 2011 that toppled Muammar Gaddafi. The government in the east of the country, which is not internationally recognized, announced that it would stop all production and exports. Investors are therefore showing timidity while the news has been hardly optimistic in recent hours. An event expected tomorrow could reshuffle the cards: the publication of Nvidia. In the meantime, we will monitor today the publications of SentinelOne in the United States and Vinci in France and we will watch the publication of the housing price index in the United States at 3:00 p.m. then that of the Conference Board consumer confidence index at 4:00 p.m. Technical section: The Paris index continues to advance slowly in low volumes. The high wick formed yesterday indicates a first signal of weakness from buyers to be confirmed today by the break of the low point of the previous session.

FORECAST

Considering the key graphic factors that we have mentioned, our opinion is negative on the CAC 40 index in the short term.

This bearish scenario is valid as long as the CAC 40 index is trading below the resistance at 7690.00 points.

Hourly data chart

Daily Data Chart