Market: Investors in ‘wait and see’ mode

( – The Paris Stock Exchange should rebound on Friday morning on a few cheap buybacks following five downturns, but trading could once again prove irregular in a market that is generally lacking in trend.

Around 8:15 a.m., the ‘future’ contract – December delivery – advanced by 19.5 points to 6669 points, suggesting an opening in positive territory.

The stock markets are entering a period of the year when volumes and volatility are low, for lack of real catalysts, and spreads have remained low all week in anticipation of the big events next week.

The Parisian market has had a tremendous rally since the end of September and it seems perfectly normal, at this stage, for investors to take a break in order to digest their gains.

Since Friday, December 2, the CAC 40 has concluded each session in the red, each time signing slight and often anecdotal setbacks.

Thursday’s session was no exception, with a moderate decline of 0.2% to 6647 points.

The addition of these small daily declines still brings the index’s contraction to 1.5% over the past five days.

In this feverish environment, the multiplication of signs of feverishness came to weaken the two shortest moving averages at 20 and 40 days, even if the CAC has not yet come to test its major reversal supports, located at 6630 and 6500 points. .

Despite the losses this week, the Parisian market should benefit Friday from the recovery operated yesterday on Wall Street, where the major indices resumed between 0.5% and 1.1% Thursday evening.

Beyond the momentum given by the New York Stock Exchange, the Parisian market is supported by the absence of a rise in bond yields and by the beginning of an easing of tensions on all the markets.

The CBOE’s volatility index VIX, a barometer of risk aversion recently rose above the 20-point mark to reach its highest level in a month this week, falling towards 22 points.

It is nevertheless the wait-and-see attitude that should prevail this weekend on the markets before the important appointments planned on the front of the central banks next week with the meetings of the Fed and the ECB.

Moreover, the fears aroused by the health of the economy and the threat of a forthcoming recession on both sides of the Atlantic are far from dissipated, while inflation is still everywhere at very high levels.

Copyright (c) 2022 All rights reserved.

Source link -84