CAC 40: a market little inspired by commercial advances

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Little packed, neither the Sino-American agreement on customs duties and rare land*, nor by the better than expected figures for inflation, the CAC made 0.36% on Wednesday, strengthening the idea that the 7,900 points are now a significant graphical force.

Donald Trump told him that the agreement with China was “concluded” subject to final approval from him and that of Xi Jinping, the Chinese president. This agreement will, according to him, allow a regular supply of rare land to the American economy. “We get a total of 55% customs duties, China 10%,” he said. This seems to correspond to customs taxes of 55% against Chinese imports, and conversely, China would apply customs tariffs of 10% towards American imports.

These Chinese rare lands are a key issue in negotiations, the United States hoping that the pace of the expeditions of these strategic metals, which has slowed down since the American president launched his world trade war in early April, said AFP.

As for American inflation, within the meaning of consumer prices, they stand at +2.4% in annualized pace, in the widest basket of products. What strengthen the ire of the owner of the White House, which still has, on its social network of microblogging.

“The Fed should drop [les taux] At a point at once. We would pay much less interest on the next debt deadlines. So important !!! “he wrote, still in capital letters on Truth Social.

On the values ​​side, Publicis closed 2.5% after having won the advertising budget of the American consumption giant Mars to its British rival WPP. Fnac Darty jumped 7.8% after delivering its new strategic roadmap and medium -term objectives. Volatiles, the titles of the alcoholiers fell back, like Pernod-Ricard (-1.25%) and Remy Cointreau (-1.17%), while they were progressing strongly at the start of the week on information from Reuters on a possible Franco-Chinese Agreement on Cognac.

On the other side of the Atlantic, the main shares on shares finished the session on Wednesday in the red or close to balance, like the Nasdaq Composite (-0.50%) or the Dow Jones (stable). The S & P500, a reference barometer of appetite for the risk in the eyes of fund managers, depreciated from 0.27% to 6,022 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 $ 1,1510. The barrel of WTI, one of the barometers of appetite for the risk on the financial markets, was exchanged around $ 66.75. 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 17.26 at the last fence of the S&P500.

At the macroeconomic agenda this Thursday, to follow primarily production prices in the United States at 2:30 p.m.; An instructive supplement as to price dynamics, the day after the publication of retail prices.

* Rare earths are a group of metals whose uses are numerous in high technologies (battery, superconductors, lasers, etc.).

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. Indeed the RSI (Relative Strenght Index) Adopt a persistent lowering bias since May 13. The tricolor flagship index is now in a glaring situation of incapacity for creations of new heights.

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