CAC 40: Bureau Veritas enters the Cac40

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This week should give way to breathing space after last week’s strong profit-taking. If the indices staged a rebound on Friday in the second part of the day, they remain under the influence of technical deteriorations linked to the Fed’s announcement. Indeed, since the announcement in a hawkish tone of the economic and monetary projections of the American central bank for 2025, the market has been under pressure. Certain elements support the idea that the American economy remains overheated and therefore argue for a slowdown in rate cuts on the part of Jerome Powell. We can notably cite the latest economic data such as American growth in particular. The U.S. economy grew at a faster pace than expected in the third quarter. Gross domestic product (GDP) grew at an annualized rate of 3.1% during the July-September period. Sales of existing homes in the United States are increasing as buyers accept high mortgage rates. The median home price reached $406,100, a record high for November. However, Friday’s rebound was able to be organized while the American central bank’s preferred inflation measure was published. Over one month, the inflation rate slowed to 0.1%, compared to 0.2% for the previous two months, slightly below analysts’ expectations. Good news which reassures investors and puts an end to a long phase of consolidation on the American Dow Jones index. In France, investors should today welcome the Bureau Veritas stock which is taking its first steps within the Cac40 while Vivendi is leaving the index, following the split of the media conglomerate into four separate entities. On the microeconomic level, other news is expected, notably the announcement by the banking group BNP Paribas of the acquisition of the asset management activities of the insurer Axa, grouped within Axa Investment Managers. We will therefore closely monitor these two stocks in the financial sector. Still within the Cac40, Eurofins Scientific announced the launch of its fourth share buyback program since 2022. This program, covering an amount which could represent up to 2% of the company’s share capital, begins this Monday and will last until December 22, 2026 at the latest. Across the Rhine, the automotive sector could be lively after Volkswagen’s announcement concerning its desire to reduce its workforce by 35,000 people by 2030 and to reduce its production by more than 700,000 vehicles per year. This announcement is the result of negotiations with the unions. On the macroeconomic level, investors will monitor the publication of consumer confidence from the American Conference Board which will take place this afternoon at 4:00 p.m.

KEY GRAPHIC ELEMENTS

Technically the Parisian index has just successfully tested polarity. The formation of the wick on this support indicates the presence of buyers and suggests a possible rebound with the objective of filling the gap in the short term. The market is now neutral. We will therefore look for long positions from 7200 points and we will take profits as we approach 7400-7500 points.

FORECAST

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

This bullish scenario is valid as long as the CAC 40 index is above support at 7200.00 points.

FORECAST

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

This bullish scenario is valid as long as the CAC 40 index is above support at 7200.00 points.

Hourly graph

Daily Data Chart