The CAC-40 is headed for a no-fault for time this week, posting a gain of +0.20% on Wednesday, at the time of the writing of this article, after +0.51% yesterday and +0.65% on Monday.
The sharp rise of the US stock exchanges yesterday, in the face of about dovish Powell that suggest with more certainty of rate cuts this year, a movement which continues more timidly now, seems to be the main factor of the good performance of the CAC 40.
The index thus hit a peak daily at 5303 points, the highest since may 28.
We also note that the PMI indices for european services for the month of may were released this morning have been slightly revised up in the second reading, which has also contributed to the increase in shares.
The prospect of the ECB meeting tomorrow possibly also the operators to the optimism, because the central bank has every reason to be showing dovish, and thus push even more the scheduled date for the first rate hike of the ECB.
In fact, for the stock markets, the later the better, although an extended maintenance of low interest rates would also mean that the growth does not take off.
At this stage of the day, the largest increase in the CAC 40 is displayed by Worldline, with a leap of more than 6%. Dassault systèmes (PA:DAST) following far behind at +2.28%, before LVMH (PA:LVMH), which is 2.10%.
The downside, it is ArcelorMittal (AS:MT) who takes the head to -2.15%, followed by Credit Agricole (PA:CAGR) to -1.85%, and societe generale (PA:SOGN) to -1.36% and BNP Paribas (PA:BNPP) to -1.30%.
The banks are, in effect, from the perspective of maintaining a low interest rate environment, as well as concerns about Italy, whose obligations (to which european banks are most exposed) could be ill-treated on a background of disciplinary proceedings from the EU for budgetary slippages.
From a graphical point of view, it will be recalled that the Euro has surpassed the moving average 100 hours, and the resistance of 5260 points yesterday, which was a bullish signal.
However, the increase of the day was faced with the resistance of 5300 points and the moving average 200 hours at 5307 points, thresholds that seem for the moment to question the possibilities of further increase.
Beyond that, a bullish reversal from the bottom would begin to take shape, with 5350 points 5400 points and 5450 points as possible goals.
Downward 5250-60 points, where is the moving average 100 hours is the first support. A break below this level would confirm the alignment with the downward trend of background. Lower down, the other potential supports are at 5200 points and 5150 points, the low of Monday.