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The initial enthusiasm was somewhat deflated on Friday on the Paris market, including the CAC 40, the flagship index, ended in balance on the 7,822 points.
Statistically, the operators have read the preliminary data of the Consumer Confidence U-Mich index across the Atlantic, came slightly above expectations at 61.8. Conjugated with the very good detail dynamics published earlier in the past week, this statistics reveal the health health of the consumer across the Atlantic.
Enough to give even more credit to the scenario of a monetary status quo at the end of the month, displeased Donald Trump.
“President Trump has renewed his attacks on Jay (Jerome) Powell at the start of the week, apparently by asking a group of republican legislators if he had to dismiss the president of the Fed. The reason? He considers that interest rates are too high. However, it is far from being obvious that the American economy currently justifies heavy drops of rate, if it is needed,” said J. Sarasin in a note published this Friday.
However, Christopher Waller, one of the FED governors, said it displayed “his preference for a drop of 25 base points (0.25 percentage points) at the end of July” during a speech in New York.
“However, Waller is unlikely to obtain the support of the FOMC (Monetary Policy Committee of the Fed, editor’s note) in July and that is why the movements on the bond market are modest,” said Jim Reid Economist at Deutsche Bank.
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, Legrand (+2.63%) managed to extend Thursday’s gains (8.96%). The specialist in electrical equipment had packed the Parisian place on Thursday, after a solid publication, accompanied by an increase in its annual growth objective. Vivendi jumped 13.3% while the AMF forced Bolloré to deposit within six months, a public purchasing offer followed by a withdrawal, on the former penny of the CAC 40.
On the other side of the Atlantic, Friday rimed with consolidation of gains, the main equity indices flirting in fence with balance, like the Dow Jones (-0.32%) and the Nasdaq Composite (+0.05%). The S & P500, a reference barometer of appetite for the risk in the eyes of the fund managers, ended perfectly stable to a 6,300 points hair.
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 $ 1,1630. The barrel of WTI, one of the barometers of appetite for the risk on the financial markets, was exchanged around $ 66.20. THE Treasuries 10 Yearsyield of federal sovereign bonds due to 10 years, was negotiated slightly above 4.42%. As for the Vix, it was worth 16.41 at the last fence of the S&P500.
At the macroeconomic agenda this Monday, to follow the index of the advanced indicators of the Conference Board 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 has just validated a sweater phase (graphic rejection).
An range of 400 points amplitude is outlined
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 7895.00 points would revive the tension to the purchase. While a break in the 7700.00 points would relaunch the selling pressure.
The News Bulletin 247 Council
Hourly data graphics
Daily data graphics
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