(News Bulletin 247) – Supported by Airbus and BNP-Paribas, the CAC managed to continue its rise on Monday, by gaining 0.53% to 7,128 points, in a market which has decidedly digested with disconcerting ease the figures of US inflation published in the heart of last week.
If Airbus (+ 1.69% to 114.04 euros) finished high on the list thanks to the announcement, at the opening of the Dubai air show, of a mega-order of 255 aircraft, it is BNP Paribas which posted the best performance of the day with a gain of 3.4%, helped by information from Reuters according to which the group is working with advisory banks on a possible sale of its American subsidiary Bank West, which could be valued up to $ 15 billion.
In terms of statistics, investors learned about the dynamics of the trade balance in the Euro Zone. The first seasonally adjusted surplus estimates for September showed a significant contraction, to 6.1 billion euros, missing the target by twice. Across the Atlantic, the NY Fed’s manufacturing index (Empire State index) beat expectations by jumping to 30.9, from 19.8 last month.
Focal point this Tuesday, the online meeting between Chinese President Xi Jinping and his American counterpart Joe Biden. Red lines have been clearly defined, such as “the case of Taiwan, supported by the United States while China maintains its discourse of control over the archipelago”, for Vincent Boy (IG France).
On the biotech side, GenSight Biologics took off by 19% after reducing the delay in the examination procedure for the marketing authorization application for its first product, Lumevoq, from 9 to 3 months. The pioneer of cell therapies has also announced a resumption of production in December 2021.
On the other side of the Atlantic, the main equity indices ended Monday’s session in equilibrium, which in itself remains a form of performance given the progress of recent weeks. The Dow Jones is worth 36,087 points and the Nasdaq Composite 15,853 points. And the S&P 500, benchmark barometer of risk appetite in the eyes of fund managers, 4,682 points.
An update on other risky asset classes: around 8:00 am this morning on the foreign exchange market, the single currency was trading at a level close to $ 1.1460. A barrel of WTI, one of the risk appetite barometers in financial markets, was trading around $ 80.00.
To be continued on the statistical agenda this Tuesday, to follow as a priority the consumer price index in France at 8:45 a.m. and retail sales in the United States at 2:30 p.m.
KEY GRAPHIC ELEMENTS
The CAC 40 index, a benchmark barometer, however imperfect it may be, of the Paris Stock Exchange, is regularly registering new absolute highs. After the bullish gap on Monday 01/11, a powerful structure of “three white soldiers advancing” has been validated. The 5 candles of the week in question also display a green body: systematically, the closing has exceeded the opening, whatever the level of opening compared to the day before. These two observations materialize, together with the transaction volumes, a phase of momentum during expression. The three shadows on the candles of 05, 08 and 09/11 show a perfectly legitimate breathlessness, but without profit taking. The bodies of said candles are otherwise green. The entry into the breathing phase of the lessons is to be anticipated.
PREVISION
In view of the key graphic factors that we have 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 index is quoting above the support at 6960.00 points.
Hourly data graph
Daily data graph
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Source: Tradingsat
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