CAC 40: US GDP surprises positively, Nvidia falls

KEY GRAPHIC ELEMENTS

The French index continued its rebound, helped by good news on several issues. Indeed, Dassault Aviation announced that it would sell 12 Rafales to Serbia for a total of 2.7 billion euros, according to information from Reuters. The spirits sector, with Rémy Cointreau and Pernod Ricard in particular, benefited from the announcement that China would not impose anti-dumping measures on products imported from the European Union and therefore more particularly on spirits. This is good news since Pernod Ricard makes around 10% of its sales in China and Rémy Cointreau makes around 25%. This announcement caused a powerful rebound on these stocks and brought luxury stocks with it, which are relatively heavily weighted on the French coast. The publication of the US Gross Domestic Product acted as an upward relay in the afternoon. Indeed, the U.S. economy grew at a slightly faster pace in the second quarter than initially reported. Gross domestic product expanded at an annualized rate of 3% in the April-June period, compared with a previous estimate of 2.8%. The announcement sent the U.S. Dow Jones Industrial Average to new records, closely following Germany’s Dax, which earlier also posted a record high. Nvidia shares fell more than 6% yesterday. The chipmaker said it expected third-quarter revenue of $32.5 billion, plus or minus 2%, just above analysts’ consensus expectations. The announcement and market behavior did not impact European technology stocks. Today we are expecting a lot of macroeconomic information, including inflation in the eurozone from 11:00, then the inflation index in the United States, called Pce, at 14:30, then investors will take note of the Chicago PMI activity indicator and finally the Michigan consumer confidence index.

> Technical Section: The French index is putting together a good candlestick. Indeed, the body of the candlestick is large and green in color with almost no wick. This suggests underlying buying pressure. The index should rally to the resistance zone of 7690 points, an area from which sellers should come forward more strongly.

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