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The 7,900 points will continue to constitute a graphic resistance level on this start of June. While May, in the positive assessment (+2.08%) did not convince on its second part; Even if the trade war waged by Trump has been slowed down, in particular by a decision of a commercial court: that of the unconstitutional nature of customs surcharges decreed by the White House.
This decision, certainly expected, will not discourage the American president in his trade war, but the brake is real.
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.
But the Sino-American tensions rose from a notch at the end of the weekend, after a post on Truth Social by the American president, Donald Trump. “Unsurprisingly, China has completely violated its agreement with us,” said the boarder of the White House. On Thursday, the American secretary of the Treasury, Scott Bessent, explained that commercial discussions with China skate and that the conclusion of an agreement would require the intervention of Donald Trump as well as that of his Chinese counterpart, Xi Jinping.
On the statistics side, the PCE index, a preferred gauge of the American Federal Reserve (Fed) to measure inflation, came slightly lower than expectations in April, at 2.1%, against 2.2% expected. “PCE inflation has returned to its lowest level for four years and has not currently showed a significant impact of customs duties implemented in recent months,” observes Bastien Drut, head of CPR AM strategy and economic studies. The economist evokes a “very reassuring” publication for the Fed.
Also note the good surprise of the consumer confidence U-Mich index, which stands out in revised monthly data almost 1.5 points above the first estimates.
On the values ​​side, on the values ​​side, Sanofi lost 4.8% after having expressed results of disappointing clinical trials for potential treatment against “smoker’s bronchitis”. Soitec (-5.75%), Vallourec (-3.37%) or Forvia (-1.97%) was not denying their status of value with a strong beta effect.
On the other side of the Atlantic, the main shares on shares finished the Friday session in dispersed order, like the Dow Jones (+0.13%) and the Nasdaq Composite (-0.32%). The S & P500, a reference barometer of appetite for the risk in the eyes of fund managers, ended on a stable note at 5,911 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 $ 1,1360. The barrel of WTI, one of the barometers of appetite for the risk on the financial markets, was exchanged around $ 62.40. THE Treasuries 10 Yearsyield of federal sovereign bonds due to 10 years, was negotiated slightly above 4.41%. As for the Vix, it was worth 18.57 at the last fence of the S&P500.
At the macroeconomic agenda this Monday, to follow the final data of the PMI manufacturers in the euro zone at 10:00 am as well as the American manufacturer ISM at 4:00 p.m.
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 status of graphic resistance, even though the dynamics of the relative force index invite caution.
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.
The News Bulletin 247 Council
Hourly data graphics
Daily data graphics
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
