After an opening in the calm, the fears of trade war China-USA continue to weigh on the stock exchange of Paris, as seen with the decline of nearly 1% gain by the CAC 40 this Monday.
Among the latest developments, it should be noted that following the decree forbidding companies in US to have business relations with Huawei, the big technology companies have already started to implement the requirements of Trump. Google (NASDAQ:GOOGLE), for example, will cease to provide Huawei in Android operating systems.
It should also be noted that several rumours have been circulating about a possible replica china, possibly against Apple (NASDAQ:AAPL), which leaves the door open to a (yet) further escalation of the trade war.
Also, this folder Huawei is indeed a barrier to obtaining a broad trade agreement between the United States and China, after months of (PA:STM), as an actor in the semiconductor sector, is the most affected in the CAC 40 by the threat of a replica of the chinese, with a dip of 7%. Air Liquide (PA:IIRA) steps to -3.51%, while Dassault System loses -2.7%.
Has the rise, progress remains limited, with a maximum gain of 0.83% posted by Orange, followed by Bouygues (PA:BOUY) to +0.49% and Total (PA:TOTF) to +0.41%, in line with the increase in oil prices.
The hourly chart shows that the moving average 200 hours, currently at 5430 points, plays perfectly the role of the trend line to the downside since last Thursday. Beyond that, 5450 points and 5500 points will be in the next resistances to watch.
In the case of a continuation of the correction, the moving average 100 hours to 5350 points will be the next logical target, prior to 5300 points and then the area of 5250 points.
