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CAC 40 Market Update

10/31/2022 12:57 PM

One of the leading indexes of the European economy CAC 40 corrects upwards, trading at around 6283.0 after the release of macroeconomic data last Friday.

The Gross Domestic Product (GDP) of France in the third quarter grew by 0.2%, which coincided with analysts' expectations, while the annual rate added 1.0%, which also remained within the forecasts. The Consumer Price Index in September increased by 1.0%, which significantly exceeded the expected 0.5% and led to an increase in the annual rate by 6.2% instead of the projected 5.7%. Thus, the Harmonized CPI rose by 7.1% from 6.2% a month earlier.

The growth of the stock index is facilitated by the situation in the domestic bond market, where there is a significant downward correction. Thus, the yield on popular 10-year Treasuries is 2.605%, which is lower than 2.988% at the beginning of last week, global 20-year bonds of France are trading at a rate of 2.993% after 3.370%, shown in mid-October, and 30-year bonds are trading at a rate of 2.886%, which is not only inferior to the yield of less long-term securities, but also much lower than 3.290% recorded in mid-October.

The growth leaders in the index are Airbus Group SE (+3.66%), Sanofi SA (+3.25%), Danone SA (+2.90%).

Among the leaders of the decline are ArcelorMittal SA (-2.76%), STMicroelectronics NV (-2.21%), Vivendi SA (-2.04%), Kering SA (-1.56%).

The asset quotes are in the global descending corridor, approaching the resistance line.

Technical indicators strengthen the buy signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram, being in the buy zone, continues to form ascending bars.

Support levels: 6170.0, 5840.0. | Resistance levels: 6400.0, 6630.0.

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