Investing.com – The CAC 40 appears clearly in the green on Tuesday, posting a gain of +0.78%, with a peak daily 5425 points at the time of the writing of this article, thus displaying a third session of consecutive rise.
The rise of the US stock exchanges yesterday, against the backdrop of agreement to avoid tariffs on US punitive damages against Mexico is not foreign to the good performance of stock exchanges in Europe.
It should be remembered that the Dow Jones posted its 6th session of consecutive rise (5th for the S&P 500 and 4th for the Nasdaq).
The reassuring news from Italy also support the morale of the investors, the coalition in power at Rome being able to agree on the need to avoid EU sanctions for budget overruns, although it has been also clarified that the budget will not be amended and that no tax increases will be decided.
At the mid-session, the highest increase in the CAC 40 is displayed by ArcelorMittal (AS:MT), which rose 6.25%. Michelin (PA:MICP) following far behind with a gain of +2.66%, not far in front of Saint-Gobain (PA:SGOB) of +2.66%.
The downside, Veolia (PA:LIFE) takes the lead in the decrease of -0.66% to Sanofi (PA:SASY) to -0.61%, and Sodexo (PA:EXHO) to -0.57%.
From a graphical point of view, the break is above the threshold of 5400 points is a bullish signal. The next bullish are now at 5450 points and 5500 points.
A return to below 5400 points would weaken the upward bias, and would allow consideration of the targets downward to 5335 points 5300 points and 5255 points in a first time, prior to the moving averages 100 and 200 hours of 5288 points, and 5292 points.
Under these thresholds, we will consider that the trend is again downward.