(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.
Clearly, the harassed technical floor of 7,200 points is only holding up by a miracle on the CAC 40, which had another difficult day, upset by Trump’s comments on foreign trade. If we knew the 45th, and soon 47th President of the United States, was offensive on customs tariffs, very concrete declarations of intent shook the Asian and European stock markets.
He wants to impose customs duties of 25% on all products from Mexico and Canada and increase those for products imported from China by 10%. Donald Trump justifies these trade retaliatory measures in retaliation for illegal immigration, and drug trafficking and in particular Fentayl, a powerful opioid which is wreaking havoc in the United States.
In terms of statistics, operators were able to take note of a very firm consumer confidence index (Conference Board), at 117.7 points. An indicator that is still closely followed, in an economy where structurally, domestic consumption is the main engine of wealth creation.
On the value side, Stellantis, penalized by Trump’s customs announcements, suffered the biggest drop in the Parisian index (-4.8%) since the automobile manufacturer produces vehicles intended for the American market in its factories located in Mexico. Trigano gained a little more than 3% supported by its annual results, which are notably marked by a “record” operating result. Amundi, on the other hand, returned 5.3%, penalized by JP Morgan and Exane BNP Paribas who lowered their recommendation to neutral on the stock, citing the uncertainties linked to distribution in Italy with the UniCredit and Banco BPM merger project, , according to information from Reuters. Lighton jumped 12.3% for its first steps as a company listed on Euronext Growth.
Operators remain on the defensive, moreover, due to French budgetary issues, while a joint committee, composed by definition of the same number of senators and deputies, meets to try to find an agreement on the budget, before the use, if applicable, by Michel Barnier, of “49.3”. A solution deemed “probable” by the person concerned, interviewed last night on TF1.
On the other side of the Atlantic, the main equity indices once again ended the session in the green, like the Dow Jones (+0.28%) and the Nasdaq Composite (+0.63% ). The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, has exceeded the symbolic threshold of 6,000 points, for the first time in its history in closing data.
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 $1.0470. The barrel of WTI, one of the barometers of the appetite for risk on the financial markets, was trading around $70.10.
On the macroeconomic agenda this Wednesday, to follow as a priority on the American side, preliminary Q3 GDP data, weekly registrations for unemployment benefits, orders for durable goods, the Chicago PMI, PCE prices and household spending and income , among other celebrations. A copious menu before the traditional closing of Wall Street for Thanksgiving on Thursday. The stock markets will reopen on Friday for a shortened session, in the natural absence of a large group of market players.
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. But on Tuesday, he was undermined once again.
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.
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.
