CAC 40: S & P500 record, doped at AI

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Nice bullish extension for the CAC 40 Wednesday, in respectable volumes, the market continuing to dissect the latest announcements of Donald Trump. The 47th President of the United States spoke of surprising information on customs duties (his favorite word in the dictionary …) and launched an investment plan in AI.

The White House tenant threatened to target the European Union and establish customs duties of 10% on imports from China, “probably” from February 1. This is still quite far from the 60% previously mentioned during the presidential campaign. Hence a continuation of the increase in luxury values, like LVMH (+1.78%), Hermès (+2.15%) or L’Oréal (+2.48%).

Donald Trump also announced the “Stargate” project, a joint venture between SoftBank, Openai and Oracle. This new company intends to develop the infrastructure necessary for the development of artificial intelligence, including data centers. It provides initial investments of $ 100 billion which must then increase to $ 500 billion. An ad that supported Schneider Electric (+2.64%) and Legrand (+2.99%), two French groups strongly present on electrical equipment for data centers, these highly strategic data centers, which allow you to organize , to exchange and store immense amounts of data.

On the other side of the Atlantic, the main shares on equity ended in the green, like the Dow Jones (+0.30%) and the Nasdaq Composite (+1.28% beyond 20 000 points). The S & P500, a reference barometer of appetite for the risk in the eyes of fund managers, experienced a high point in session at 6,100 points, which constitutes an absolute record.

A point on the other asset classes at risk: around 8:00 am this morning on the exchange market, the single currency was treated at a level close to $ 1,0410. The barrel of WTI, one of the barometers of appetite for the risk on the financial markets, was exchanged around $ 75.00.

At the macroeconomic agenda this Thursday, to follow in priority, at 2:30 p.m., weekly registrations for unemployment benefits in the United States.

Key graphics elements

We attended a major technical and graphic fact Thursday January 16 with crossing on Gap then extension in session, from the pivot threshold of the 7,500 points, which finds its support attributes. The current work base therefore becomes a band between 7,500 and 7,690 points, in which a certain form of volatility is far from excluded.

This crossing was immediately followed by a new GAP (less ample) and a bullish extension in session, with the participation of many sectors, marking the assertion of the buyer camp.

A first manifestation of a need for courses breathing was illustrated on Wednesday with a high shadow on the candle, on a level close to the 7,800 points, the first palpable obstacle since the rush crossing of 7,465/7,500 points.

FORECAST

In view of the key graphic 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 a crossing of the 7900.00 points would revive the tension to the purchase. While a break in the 7690.00 points would relaunch the selling pressure.

Hourly data graphics

Daily data graphics