CAC 40: the Strong decline in the face of the disappointing statistics and trade tensions

The CAC 40 posted its worst session of the week at mid-day on Thursday, showing a drop of -1.87% from yesterday’s close.

The CAC 40 is affected by multiple factors today, including new declarations in the framework of the trade war China-USA, which suggests that the conflict between the two countries could settle in for the duration.

“Both the United States and China appear to be preparing for a long period of trade conflict,” write the analysts of Nomura in a note. “We believe that the pressures and constraints inland will lead the two parties to a new escalation. “

Let us recall that this week has been marked by the attack of US against Huawei and other chinese companies, under the pretext of ” national security “, which constitute a new escalation in tensions between the two countries.

It should be noted that the CAC 40 is also affected by the series of european statistics are disappointing released this morning, with indices PMI preliminary for the month of May, disappointing in Europe, and with an IFO index under the consensus in Germany.

The largest decrease in the CAC 40 is displayed by Vvendi, with a decline of -4.28%, followed closely by STMicroelectronics (PA:STM), a decrease of -4.02%, not far in front of ArcelorMittal (AS:MT) which drop of -3.51%. Worldline then takes the 4th place at -3.50%, before Valeo (PA:VLOF) -3.27%.

A single value of the CAC 40 is higher at the time of the writing of this article : Sodexo (PA:EXHO), with a meager gain of +0.20%.

From a technical point of view, the fall of the day corresponds to an acceleration to the downside following a release by the bottom of a triangle visible in the hourly data since the middle of the month. Several supports have been broken, including 5300 points, and the next goal chart is the low of may 13, in the area of 5245 points.

The increase, 5300 points becomes the first resistance near the current levels, prior to 5350 points 5400 points and 5450 points.

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