(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.
A little “fright” on the eve of Halloween for the CAC 40 which broke the graphic threshold of 7,500 points on gap, but ended up well away from its session lows, down 1.10% to 7,428 points. Tech will have weighed heavily, after a downward revision of CapGemini’s growth forecast (-6.39%). By imitation, the entire sector in Paris suffered, like Alten (-3.37%), Ubisoft (-3.98%), XFab (-4.56%) or Soitec (-6 .70%).
“This is a disappointing publication from Capgemini. Certainly, it was in the air, given the negative newsflow (the announcements, Editor’s note) in the automotive and aeronautics sectors and after the disappointing publications of several peers (IBM , Alten, TietoEVRY), but the scale is greater than we feared, with a surprisingly weak performance in the United States,” writes Oddo BHF in a note published before the market opened.
The market remains under pressure from the warming of the American 10-year, close to 4.30%, the highest since July. A warm-up further encouraged yesterday by the impressively resilient content of the ADP firm’s survey on American employment, exploding expectations, as a preview of the federal report on private employment tomorrow.
Furthermore, operators have taken note of the publication of GDP for the third quarter. The US economy grew at an annualized rate of 2.8%, slightly less than the 2.9% growth economists had hoped for and the 3% growth recorded in the second quarter. But “this is still a very good statistic”, say ING economists, which reassures investors. “Consumer spending was very robust, as expected based on monthly retail sales data, increasing by 3.7% and, within this, spending on goods increased by 6%,” they continue.
To be complete on the values side, Saint-Gobain finished at the top of the CAC 40 after delivering revenues in line with expectations in the third quarter and counting on continued sequential improvement in its activity. Pernod Ricard returned 4.4% and Rémy Cointreau (-3.6%) while the Italian Campari plunged 15% on the Milan Stock Exchange, after revealing summer activity deemed “very disappointing” by Royal Bank of Canada .
On the other side of the Atlantic, the main equity indices ended Wednesday’s session in the red, like the Dow Jones (-0.22% to 42,141 points) and the Nasdaq Composite (-0 .56% at 18,607 points). The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, contracted by 0.33% to 5,813 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 $1.0850. The barrel of WTI, one of the barometers of the appetite for risk on the financial markets, was trading around $68.80.
On the macroeconomic agenda this Thursday, priority will be given to PCE prices, the Fed’s preferred measure in its assessment of price dynamics, as well as weekly registrations for unemployment benefits at 1:30 p.m. Also to follow are household expenses and income (1:30 p.m.) and the CHicago PMI (2:45 p.m.).
Note that the East Coast of the United States has not in turn switched to winter time, the opening of Wall will take place, in the meantime, at 2:30 p.m.
Tomorrow, November 1, a public holiday, the Paris Stock Exchange will remain open, under usual opening and trading conditions.
KEY GRAPHIC ELEMENTS
The 7,465/7500 points gave way on Wednesday 30/10, on gap, in thick volumes, and in conditions of notable volatility. The short-term bearish message is thus mechanically validated. The next identifiable level is 7,340 points.
FORECAST
Considering the key graphical 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 below resistance at 7690.00 points.
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.