The CAC continues to see a lot of noise, as we see a lot of issues around the world, not least of which are oil and interest rates.CAC 40
The Parisian CAC 40 fell fairly significantly during Wednesday’s trading session to test the €8,100 level and then broke down below it, although we have since seen a little bit of a pushback. Ultimately, this is mainly driven by the rebound in oil, while pressure in bond markets has weighed upon European equities overall.
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Paris also saw broader selling in general. 287 stocks fell versus 159 that rose on the exchange. The biggest index movers were EssilorLuxottica and TotalEnergies, but at the same time we have seen Renault and others lose significantly. Losses across consumer and financial shares made the decline broader than just a single-stock type of move.
The technical picture shows significant support just below
The technical picture shows significant support just below, but really, at this point in time, the biggest movers will be oil and French yields. The primary driver will be whether or not oil can slow down.
The €8,200 level above is an area of resistance, followed by the 200-day EMA underneath. We have pretty significant support all the way down to the €8,000 level. This is a market that currently is bouncing around in a relatively tight range, and it does make a certain amount of sense that we would continue to see this as a market that is in flux and will have to make a longer-term decision.
It is worth noting, though, that after the Paris close, there has been a significant amount of momentum in U.S. yields rising, so we will have to see how that plays out in France and other countries, as it appears that oil will continue to be a major problem.
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