Investing.com – The CAC 40 opens down on Tuesday morning, losing close to 1% at the time of the writing of this article, after a gain of +0.65% as the closing yesterday evening.
Overall, it is the theme of the global economic slowdown that weighs on investor sentiment this morning, as it is becoming increasingly clear to the market that the impact of the trade war on the US economy should lead the Fed to lower rates this year.
Bullard, a voting member of the Fed is in fact expressed on this subject yesterday evening, and Powell, the chairman of the Fed, should speak today at 15: 45, which might offer a new opportunity for the market to update its rate expectations.
It should also be noted that several banks have also an opinion-conservative on the global economy, such as Morgan Stanley (NYSE:MS), who spoke yesterday to a global recession in 9 months if the trade war China-USA empire.
The closing down of the US stock exchanges yesterday, is also to be considered as a factor bearish for the CAC 40 today.
In the charts bearish, we found Dassault Systems (PA:DAST) in the first place, in the decline of -3.45%. Orange takes second place to -2.83%, before Sodexo (PA:EXHO) -1.94%.
Among the shares of CAC 40 on the rise, ArcelorMittal (AS:MT) takes first place at +2.20%, followed by Unibail Rodamco (AS:URW) +2.10% and Renault (PA:RENA) to +1.8%.
From a graphical point of view, the trend of the CAC 40 remains bearish, with a zone of resistance around 5250 points near the moving average 100 hours to 5260 points.
However, only a return back above 5300-5315 points (moving average 200 hours) would open the way to a reversal to the upside the general trend.
The downside, 5200 points is a medium that is immediate, before the low of yesterday at 5150 points.