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French Stock Market Continues to Rise

11/9/2022 1:05 PM

One of the leading indexes of the European economy CAC 40 continues its upward correction in the area of 6418.0, which was supported by yesterday's macroeconomic report: according to September data, French Exports rose to 52.0 billion euros from 51.88 billion euros in August, while Imports rose to 69.5 billion euros from 67.1 billion euros.

In the corporate sector, yesterday's statement by the management of Renault SA stands out, which announced the restructuring of the business of cars with internal combustion engines and electric vehicles, which will allow the issuer to increase operating profitability. According to analysts, it may exceed 8.0% in 2025 and 10.0% in 2030. A new electric vehicle company called Ampere is valued at 10.0 billion euros. Its shares are planned to be placed on the stock exchange in the second half of next year, and the controlling stake, as noted, will be owned by Renault SA.

In the meantime, auctions were held on Monday to place French short-term bills: annual bonds were sold at a rate of 2.344% after 2.145%, fixed earlier, and short-term 3-month bills sold at a rate of 1.301%, which is lower than the previous 1.330%.

The growth leaders in the index are STMicroelectronics NV (+4.39%), Capgemini SE (+3.48%), Alstom SA (+3.36%).

Among the leaders of the decline are Renault SA (-3.30%), TotalEnergies SE (-1.75%), Carrefour SA (-1.75%), Pernod Ricard SA(-0.80%).

On the daily chart of the asset, quotes continue to trade within the 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: 6330.0, 6030.0. | Resistance levels: 6550.0, 6830.0.

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