(CercleFinance.com) – The Paris Stock Exchange should open unchanged or almost unchanged on Thursday morning, the autumn ‘rally’ observed since the end of September, and which has enabled the CAC 40 to recover 17% of its value, seeming now clearly running out of steam.
Around 8:15 a.m., the ‘futures’ contract on the CAC 40 index – end of month delivery – nibbles away eight small points at 6671.5 points, signaling a sluggish start to the session.
Traditionally, global stock markets tend to rise over the last month of the year, as illustrated by the average gain of the S&P 500 index over this period, which is around 1.4%.
But some strategists believe that most of the rebound has materialized in recent weeks, a finding confirmed by the recent renewed interest in the safe haven sectors of the rating as well as for the most defensive values.
In this context, investors could be tempted to sell the winning stocks and start positioning themselves in the sectors deemed the most promising as 2023 approaches.
As such, the fears aroused by the health of the economy and the threat of a forthcoming recession are far from dissipated and seem for the moment to make a possible ‘Christmas rally’ unlikely.
The Parisian market closed yesterday’s session on a decline of 0.4% to 6660 points, thus aligning a fourth consecutive session of contraction.
At this stage of the week, the ACC shows a weekly decline of 1.4% which places it in a bad position for the registration of a tenth consecutive week of increase.
The markets have completely ignored the announcements of the easing of health restrictions in China, yet harbingers of a future recovery in economic activity in the country.
Salvation did not come from Wall Street, where the indices struggled to rebound last night after a series of four declining sessions came to break the almost uninterrupted upward movement that had carried them since mid-October.
At the final bell, the Dow Jones was stable, but the Nasdaq Composite was down 0.5% and the S&P 500 lost 0.2%.
Caution is likely to weigh on the markets until the announcement next Wednesday of the US Federal Reserve’s monetary policy decisions.
For the time being, analysts do not believe in a fanfare to the end of the year and rather anticipate a consolidation of positions.
In view of this temporization phase marked by a glaring absence of volumes, the CAC 40 index should not be able to find the resources necessary to reach the pivot threshold of 6700 points.
For the chartists of Kiplink Finance, the upper short-term objectives remain unchanged, with the main target points being the thresholds of 6780, then 6815 points.
Conversely, the intermediate support of 6630 points and the main support of 6500 points remain to be monitored, they warn, knowing that a quick test of this last support could trigger ‘a first and serious trend reversal’.
Variations are therefore expected to be limited in the absence of major economic events, with the macroeconomic agenda for the day set to be particularly thin with the only publication on the program being registrations for unemployment benefits in the United States.
Copyright © 2022 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
