CAC 40: The 7,200 points, increasingly weakened

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Reassured by D Trump’s appointment of Scott Bessent as US Secretary of the Treasury, investors pushed the cursor towards the “Buy” case at the start of the session on Monday, before the blow subsided. In the end, the CAC index ended on an almost stable note, at 7,527 points, at the heart of its graphic working band, between a very fragile floor at 7,200 points and solid resistance at 7,340 points.

Investors appreciate the profile of the future head of the US Treasury, who will succeed Janet Yellen. The positions of this emblematic figure of Wall Street are perceived as more moderate, particularly on customs duties.

For Stephen Innes, analyst at SPI AM, this choice is interpreted “as a sign that President-elect Trump could adopt a more measured approach to customs duties and tax policy.” Scott Bessent indicated that he advocated a “gradual” implementation during an interview with CNBC earlier this month. He also pleads for a more nuanced budgetary policy while operators previously feared a slippage in public accounts.

Scott Bessent is a former collaborator of famous investor George Soros.

Files with a very strong Beta effect, and highly sensitive to foreign trade issues, took the opportunity to gain height, like Forvia (+5.01%) or Kering (+5.52%). Star of the day in compartment A of the rating, Soitec dominated the debates by amplifying its increase (+15.7%) in powerful volumes. An awakening orchestrated last week following the publication of its quarterly copy showing encouraging signs.

On the statistical side, nothing substantial to sink your teeth into yesterday Monday. The IFO (morale of German entrepreneurs) came out slightly below expectations. The agenda will be denser from this Tuesday, with the consumer confidence index (Conference Board) at 4:00 p.m. and the traditional Fed Minutes at 8:00 p.m. The opportunity to find out more about the intentions of the powerful central bank.

On the other side of the Atlantic, the main equity indices once again finished in the green, like the Dow Jones (+0.99%) and the Nasdaq Composite (+0.27%). The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, gained 0.30%; failing 13 points from the symbolic threshold of 6,000 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 $1.0480. The barrel of WTI, one of the barometers of the appetite for risk on the financial markets, was trading around $68.90.

KEY GRAPHIC ELEMENTS

With a candle with a long red body on Tuesday, November 12, the index defined the amplitude of a new working base, between 7,200 points on the one hand and 7,340 points on the other hand, which we switch to chart resistance zone. The thick volumes of this key session, combined with the opening gap, give meaning to the threshold break.

The 7,200 points constitute an increasingly fragile harassed floor. It was preserved last week, allowing the index to begin this week at the heart of the working band mentioned above.

FORECAST

Considering the key graphical 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 7340.00 points would revive the buying tension. While a break of 7200.00 points would restart the selling pressure.

Hourly graph

Daily Data Chart