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Stock market : the CAC40 rebounds after yesterday’s stumble

Stock market : the CAC40 rebounds after yesterday’s stumble

The Paris Bourse is heading for a seventh week of gains, with the opening in the green, marking a rebound from the previous day’s misstep.

 

At the opening this morning, the future contract on the CAC40 index rose by 30 points to 7172 points, heralding a favourable start to the session.

 

The first exchanges of this Friday have thus recorded an increase of 0.39%. In this sense, the CAC40 is on its way to a seventh consecutive week of gains since the fall at the end of August. The bullish momentum that has been present since then is showing some resistance in the face of inflationary fears or the resumption of the Covid-19 epidemic in Europe.

 

The CAC40 had ended lower the previous day, marking the end of a long run of gains. The atmosphere on the Paris stock exchange deteriorated yesterday afternoon, in parallel with a complicated start to the session on Wall Street where, after a scattered opening following a down session, the indices fell again in the morning before recovering somewhat. As a result, the CAC40 gave up 0.21% at the end of the day, putting an end to a bullish sequence that had not occurred since November 1999. Analysts believe that this moderate decline does not yet call into question the ascending channel inaugurated at the beginning of October.

 

Over the last fifteen sessions, i.e. since 28 October, the CAC40 has ended 14 times in the green, gaining nearly 6% over the period. Its only decline, on 9 November, resulted in a consolidation of less than 0.1%.

 

After such a track record, the Parisian index could be tempted to camp on its recent records in order to end the year at the top.

 

As the quarterly reporting season comes to an end, investors will have to look for other catalysts to support the trend. However, with no major economic indicators on the agenda today, markets may be moving without clear direction.

 

See Also

The risk of volatile trading remains high, especially at the end of the session. The cause of this is the so-called “three witches” phenomenon, a term used to describe the expiry of a whole series of derivatives, generally synonymous with high volatility in the markets. It remains to be seen how the CAC40 will approach this new period.

 

 

Read also > STOCK MARKET : THE CAC40 REACHES RECORD LEVELS

 

Featured photo : © Getty Images

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