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CAC 40 Market Upadate

11/25/2022 2:17 PM

One of the leading indexes of the European economy CAC 40 corrects upwards, trading at around 6707.0, after the publication of positive news from the corporate sector.

French companies continue to demonstrate fairly strong financial results, despite another decline in business activity in the country: in November, the figure corrected from 103.0 points to 101.0 points against the forecast of 102.0 points. However, at the moment, the attention of investors is drawn to the statement of representatives of the automotive corporation Renault Group on the conclusion of cooperation with the energy companies Engie SA, Voltalia SA and Electricite de France SA for a 15-year supply of electricity from renewable sources, which can cover up to 50% of the needs of the automaker in the country. Recently, the issue of decarbonization of production in France has been quite acute, and reports of a deal may cause approval from the environmental community, allowing the issuer to attract additional investment.

Another factor in the increase in quotes of stock indicators is the decline in the bond market. France's popular 10-year bonds are trading around 2.266%, well below the 2.860% yield at the start of the month. The situation is similar with long-term 20-year bonds, the yield of which reaches 2.585% compared to 3.190% in the first week of November.

The growth leaders in the index are WFD Unibail-Rodamco NV (+3.67%), Renault SA (+3.15%), Worldline SA (+2.69%).

Among the leaders of the decline are Airbus Group SE (−0.44%), EssilorLuxottica SA (−0.23%), Danone SA (−0.22%), Legrand SA (−0.03%).

On the daily chart, CAC 40 quotes continue to trade above the resistance line of the descending corridor.

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: 6610.0, 6340.0. | Resistance levels: 6800.0, 7160.0.

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