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Tracked by Schneider Electric (+7.73%) and Legrand (8.96%), the CAC 40 gained 1.29%to 7,822 points yesterday, in slightly increased volumes. A market that has benefited from the support of retail sales in the United States, a mirror of a consumer in great shape.
These sales jumped 0.6% (0.5% excluding automobiles), against an expected quasi-stagnation. What support the probabilities of a monetary status at the end of the month, to the chagrin of Donald Trump, who continues to exert indecent pressure on the patron of the Fed, J Powell, so that he softens his monetary policy.
Several sources reported on Wednesday July 16 that the American president was preparing to dismiss the president of the Fed. But the president denied the information, believing that the dismissal of Jerome Powell was “highly improbable”.
Trump believes that Powell “does bad job” but he is “not talking about” to dismiss him, he assured. “We are not planning to do anything,” he added.
“Beyond the interest rates, Trump has pointed out the renovation expenses of the Fed headquarters, described as” ridiculous extension to $ 2.5 billion “.” Is this a reason to justify a dismissal? I think it can be, “he launched, in reference to an envelope validated by the Management and Budget Office (OMB)”, explain the specialists.
Trump keeps calling Jerome “Too Late” Powell to lower the dollar rent. However, the latter justifies its cautious attitude by the inflationary effects still difficult to quantify extreme budgetary and commercial policies of the White House.
On the values side, the CAC 40 was increased by the 7.7% increase in Schneider Electric, the highest weighting in the calculation of the index. The group of electrical equipment is itself drawn by its comparable, Legrand (+8.96%), which has raised its growth objective, thanks to the vigor of demand in the Data Centers in the United States, to which Schneider Electric is itself very exposed.
In contrastPublicis plunged 6.65% after having given greater growth in the expectations in the second quarter and noted its target of progression of its income for 2025. But some analysts point to an overly “shy” revision of this objective, when others evoke negative comments around the expected performance of Sapient, a subsidiary of Publicis, in the second semester.
On the other side of the Atlantic, the main shares on shares finished the session of Thursday in the green, like the Dow Jones (+0.52%) and the Nasdaq Composite (+0.75%). The S & P500, a reference barometer of appetite for the risk in the eyes of fund managers, gained 0.54% at 6,297 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 $ 1,1620. The barrel of WTI, one of the barometers of appetite for the risk on the financial markets, was exchanged around $ 66.50. THE Treasuries 10 Yearsyield of federal sovereign bonds due to 10 years, was negotiated slightly above 4.47%. As for the Vix, it was worth 16.52 at the last fence of the S&P500.
At the macroeconomic agenda this Friday, to follow in priority the preliminary data of the consumer confidence index (U-Mich) at 4:00 p.m.
Key graphics elements
The release of the technical camisole is confirmed, coming to give more meaning to the supporting of the mobile average at 20 days (in dark blue).
The buying position on the spot can be kept as long as the oscillations are built between this trend curve and the high bollingger strips (20; 2.5).
The relative force index (RSI) is in full convergence with the courses.
The index is currently in the sweater phase (graphic rejection).
FORECAST
In view of the key graphic factors that we mentioned, our opinion is positive on the CAC 40 index in the short term.
This bullish scenario is valid as long as the CAC 40 rating index above the support at 7700.00 points.
The News Bulletin 247 Council
Hourly data graphics
Daily data graphics
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