CAC 40: Exchanges shortened for New Year’s Eve

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The CAC index, flat and sluggish during a good first part of the session, adopted a bearish bias shortly after the opening of Wall Street, the end of the year of which is marked by profit-taking on the big winners of the year, the 7, or now 8, Magnificent. The flagship index of the Parisian market contracted by 0.57%, although volumes were low, due to the absence of many operators during this holiday period. Please note that today’s session will be exceptionally shortened, with a fixing at 2:05 p.m.

On the value side, Boeing lost another 2.1% the day after the crash of a Jeju Air 737-800 plane in South Korea, killing 179 people out of 181 passengers. South Korea also launched on Monday a “full inspection” of all Boeing 737-800s used by the country’s airlines after the air disaster.

Apart from this file, Engie and Orange gained 0.6%, while Orange increased by 0.5%. Conversely, L’Oréal (-2.1%), STMicroelectronics and Edenred (-1.5%) recorded the most pronounced declines in the flagship Parisian index. On the SBF 120, Maurel and Prom (+2.6%), Elior Group (+2.2%) and Dassault Aviation (+1.6%) occupy the leading trio at the close.

On the other side of the Atlantic, the main equity indices ended Monday’s session in the red, like the Dow Jones (-0.97%) and the Nasdaq Composite (-1.19%). . The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, lost 1.07% to 5,906 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 $1.0400. The barrel of WTI, one of the barometers of the appetite for risk on the financial markets, was trading around $71.50.

On the macroeconomic agenda this Tuesday, to follow as a priority the Chicago PMI index at 3:45 p.m.

KEY GRAPHIC ELEMENTS

Here are the technical elements that we proposed on Friday.

“Technically the Parisian index is neutral in the short term. It remains stuck below its bearish gap and below its moving average at 20 daily periods. These two technical levels must be resumed at the close to see a graphical improvement. As long as the index remains under these two technical elements the index could come back to test the polarity of 7200 points again in the short term.”

All that is missing is the volumes to fully validate this movement.

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 7465.00 points would revive the buying tension. While a break of 7200.00 points would restart the selling pressure.

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 7465.00 points would revive the buying tension. While a break of 7200.00 points would restart the selling pressure.

Hourly graph

Daily Data Chart