(CercleFinance.com) – The Paris Stock Exchange began the session on a stable note on Friday, with investors playing the card of caution as the markets established new all-time highs yesterday. The CAC40 index remains close to 8175 points.
Over the week as a whole, the flagship index at this stage displays a symbolic gain of around 0.2%.
World stock markets are preparing to quietly end a week mainly marked by the confirmation of the Fed’s accommodating tone.
In recent weeks, investors seem to want to catch their breath after a bullish streak fueled by confidence in the economic outlook and the strength of the technology sector.
Wall Street certainly managed to achieve a third consecutive session of increases last night, with new records to boot, but the trend weakened at the end of the session.
On a technical level, the CAC 40 stumbled again yesterday on the 8250 points zone, considered a key level, but also as a target for profit taking for certain traders.
The temptation to take profits is great in the face of current high valuations, which could push operators to take some gains on current levels while waiting for new catalysts.
‘There will of course be a breathing space in the market. This is necessary after the spectacular rise at the start of the year,’ believes Christopher Dembik, investment strategy advisor at Pictet AM.
‘In the long term, we remain convinced that the underlying trend is upwards’, however, tempers the analyst.
A point of view shared by Alexandre Baradez, the head of market analysis at IG France, who is however not known to be the most ‘bullish’ (optimistic) strategist in the Parisian market.
According to the analyst, the potential for appreciation of the Parisian index still remains significant, with the aim being the more psychological than technical level of 10,000 points.
‘I obviously think that we will not go in a straight line on these levels but they are achievable objectives in the medium term,’ he told Cercle Finance.
If this last session of the week promises to be relatively light on economic data, investors will still focus on the Ifo business climate index in Germany, which was published in the morning.
The rise in the Ifo Business Climate Index (BCI), which rose from an upwardly revised 85.7 in February to 87.8 in March, is well above expectations (consensus 86, 0; CE 85.5) indicates Capital Economics. It is at its highest level since last June.
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