Paris remains a noisy place of business at the moment, but we are sitting right on support.
CAC 40
The Parisian index has been somewhat noisy during the trading session here on Monday as we hug the 8,400 euros level. This is a market that has been a bit choppy as of late as traders are worrying about the overall situation in the Middle East and what it could do to, in the case of France, the luxury sector.
There are huge luxury brands in this index that have a lot of customers in the Middle East, and if there is a bit of a significant escalation in the conflict in the Middle East, that could have a major influence on how their customers behave.
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The market recently has been one that has been selling off, but it is sitting right in a support area with a mixed bag here in Paris. Some of the dragging stocks are Airbus, Safran, Unibail, and Legrand. The banks are pretty much flat, so it's not a financial sector problem, and the leaders are basically going to be who you would expect when energy spikes. This includes TotalEnergies, which is up about 1.7%.
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Fitch has reaffirmed France at an A+ credit rating, so that helps. So, the tail risk of that is moved. And of course, the Kevin Warsh speech from Jackson Hole rattled markets as it looks like the Federal Reserve won't be cutting rates, and while that's not France, it has a major influence on how things move around the financial world.
The 200-day EMA sits at 8,278 euros, and it could offer a bit of support. Ultimately, this is a market that I believe still has a certain amount of support underneath, and I'm actually looking to get long if we can get a sustainable surge to the upside and above that 8,400 level.
With this, I just simply wait, but this is an area where value hunters might come back into play.
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