CAC 40: American consumption price on the menu of the day

(BFM Stock Exchange) – This article, with free access, is produced by the research team in BFM Stock Exchange analysis and market strategy. To not miss any opportunity, consult all of the analyzes and discover our portfolios by accessing our privilege space.

In the absence of bad news on commercial and monetary fronts, the market continues to move forward, in this case beyond 8,000 symbolic points for the CAC 40, well helped by the banking sector, Société Générale in mind ( +3.64%).

The main meeting of the market took place this afternoon with the hearing of the President of the Federal Reserve (Fed), Jerome Powell, before a Senate committee. Unsurprisingly, the central banker tempered on the potential drops in key rates. “The economy is overall strong and has made significant progress towards our objectives in the past two years. We do not need to rush to adjust our monetary policy,” said the official, according to comments reported by Reuters. The official also abstained from any political comment linked to the Trump administration. Jerome Powell will be auditioned on Wednesday, this time before a commission from the House of Representatives.

To be complete on the values ​​side, Kering finished the session on a shy +1.31%, while the gains exceeded 6% during the session, after the publication of his quarterly copy. In addition, Essilorluxottica won 1.7%, taking advantage of a Jefferies note which noted his advice on the title, going from “keeping” to “buy” as well as his lens of courses at 310 euros against 195 euros previously.

On the other side of the Atlantic, the main shares on shares finished the Tuesday session in dispersed order, the Dow Jones grappling 0.28% and the Nasdaq Composite contracting by 0.36%. The S & P500, a reference barometer of appetite for the risk in the eyes of fund managers, played the averages by stabilizing around 6,070 points.

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 $ 1,0,300. The barrel of WTI, one of the barometers of appetite for the risk on the financial markets, was exchanged around $ 72.40.

At the macroeconomic agenda this Wednesday, to follow the retail prices (CPI), or consumer prices across the Atlantic at 2:30 p.m. For the widest product basket, prices in January are expected, as an annual rate, up 2.9%.

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. Between 7,900 and 8,000 points, the flagship index comes into a very short -term over -rascal zone, premises a consolidation entry.

The index just flirted with the 8,000 symbolic points on Friday 24 and 31/01 and reflected on Monday 27/01 and 03/02. Both doji Indecision traced at the heart of the week are a marker of a wait -and -see attitude, and therefore of a precarious balance, at the start of consolidation. This balance was broken from the beginning of February, by a large -scale gap. The real test in progress is that of the 8,000 points.

The construction of a lowered harami on Friday 07/02 obeys the chances of rapid and sustainable crossing of the 8,000 points. This will take sufficient breathtaking.

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 8315.00 points would revive the tension to the purchase. While a break in the 7810.00 points would relaunch the selling pressure.

Hourly data graphics

Daily data graphics