CAC 40: There is no reason to consider a change in trend – 09/23/2022 at 08:33

The Palais Brongniart, former headquarters of the Paris Stock Exchange.  (Photo credit: / L. Grassin)

The Palais Brongniart, former headquarters of the Paris Stock Exchange. (Photo credit: / L. Grassin)

(CercleFinance.com) – The Paris Stock Exchange is expected to be flat on Friday at the start of a session that will be mainly dominated by the release of the latest PMI surveys on private sector activity in Europe.

Around 08:15 am, the CAC 40 index futures contract -delivery in October- advanced 25.5 points to 5,946.5 points, which suggested a timid rebound after the correction of recent days.

The Parisian market closed yesterday with a fall of 1.9%, to 5,918 points, in a context of general decline after the Fed’s offensive comments on Wednesday night.

At this point in the week, the CAC is showing a weekly decline of around 2.6% and technicals remain too weak at the moment to forecast a positive fundamental move, chartists warn.

According to analysts, the breakout of 5,980 points could even herald a relapse to the 5,795/5,800 point floor, which will likely lead to a retracement of the yearly low of 5,750 points, which acts as an “attractive force” to use the words of the Kiplink Finance teams.

In New York, the US equity markets closed again in the red this Thursday after a session in which investors were able to verify that inflation continued to be a major cause for concern for the Federal Reserve, given the risk of dragging the economy down. to recession.

Inflation, which is slow to normalize, continues to worry Fed decision makers, which is pushing the dollar down to around 0.98 against the euro.

Questions about the US central bank’s action also supported Treasury yields, the 10-year Treasury now running highs since the financial crisis, at more than 3.70%.

In these conditions, investors will have to be careful not to take too many risks while waiting for the release of the latest European PMI indices in the morning.

With rising energy prices, rapidly rising interest rates and slowing global growth, the Eurozone Composite PMI fell back below 50 points in August.

For economists at Oddo BHF, this key activity indicator “has every reason to weaken further” in September.

“The base scenario is still recession,” warns the private bank in a recent research note.

The day will also be marked by the release of the US PMI, which should also sink a bit deeper into a danger zone, once again confirming the reality of the recessionary threat across the Atlantic.

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