CAC 40: The 7,900 points, a resistance that asserts itself

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The session had started well on Thursday, in the wake of the decision of the American commercial court of the unconstitutional nature of the decision by decree of customs surcharge imposed by Trump on his commercial “partners”.

According to this court, the application of customs duties by the White House is unconstitutional, these measures under the congress. The national emergency character argued by Donald Trump to justify this prerogative was therefore not retained. This decision, certainly awaited, will not discourage the American president in his trade war, but it is clear that this camouflet rained in the Asian markets, closing sharply on Thursday. The Dax and the CAC, for their part, sees at midday their opening gain stirring.

A White House spokesman denounced a decision taken by “non-elected judges” who “did not” manage a national emergency properly “. So far, the American president was based on the 1977 economic emergency law to proceed by decree on the issue of the increase in reciprocal customs duties.

It is a group of five small American businesses that is behind these proceedings. First of all, a New York import society of wines, spirits and other sake called your selections. Donald Trump’s threats to alcohol (and in particular French) have caused the officials of this small company founded in 1987.

The other complainants are quasi-anonymous companies who say they represent “the American worker”. We find in particular Fishusa, a company from Pennsylvania which sells fishing equipment, Genova Pipe which manufactures in the UTAH pipes and plastic fittings for plumbing or microkits, a manufacturer of music instruments from Virginie and finally Terry Cycling which markets cycling clothes from the vermont.

The CAC 40 had opened up clear on Thursday, before seeing its winnings gradually stretch. The Parisian flagship index finally closed in the red, symbolically (-0.11% at 7,779 points).

In the statistical chapter, the unemployed weekly registrations have registered at 240,000 units over the closed week on May 24, against 230,000 units expected by economists while house sales fell 6.3% in April when the consensus awaited 1%. American GDP also fell 0.2% in the first quarter, according to a second estimate, against -0.4% for the first estimate.

On the values ​​side, Edenred signed the highest increase (+1.7%) of the CAC 40. Thales has suffered from profits, backing 2%. In addition to Atlantic, Nvidia gained 3.25% at $ 139.19, in the wake of a reassuring publication.

On the other side of the Atlantic, the main shares on shares ended timidly in the green, like the Dow Jones (+0.28%) and the composite Nasdaq (+0.39%). The S & P500, a reference barometer of appetite for the risk in the eyes of fund managers, gained 0.40% to 5,912 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 $ 1,1270. The barrel of WTI, one of the barometers of appetite for the risk on the financial markets, was exchanged around $ 62.80. THE Treasuries 10 Yearsyield of federal sovereign bonds due to 10 years, was negotiated slightly above 4.52%. As for the Vix, it was worth 19.31 at the last fence of the S&P500.

At the macroeconomic agenda this Friday, to follow the PCE prices at 2:30 p.m.; This is the predilection measurement for inflation for the Fed. To follow also, at 4:00 p.m., the revised data of the consumer trust index (U-Mich).

Key graphics elements

The gradual cap under the 7,900 points has suddenly turned into intense volatility. In one session Friday, May 23, the Parisian flagship index broke the Dynamics of the spring rally by breaking the mobile average at 20 days (in dark blue), the difference compared to the mobile average at 50 days (in orange) has taken up strongly.

The 7,900 points are reinforced in their graphic resistance status.

FORECAST

In view of the key graphic factors that we have mentioned, our opinion is negative on the CAC 40 index in the short term.

This downward scenario is valid as long as the CAC 40 rating index below resistance at 7900.00 points.

Hourly data graphics

Daily data graphics