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CAC 40 Market Update

2/10/2023 12:59 PM

One of the leading indexes of the European economy, CAC 40, is correcting, trading at the level of 7145.0.

The day before, financial statements for the fourth quarter were published by major players in the financial market. Thus, the second largest French bank Credit Agricole SA recorded a profit of 1.56 billion euros, exceeding the previous figure by 9.0%, while revenue grew by 2.7%, amounting to 5.97 billion euros, and the cost of risk at the same time decreased by 31.5%, while it increased by 10.0% for key competitors BNP Paribas SA and Societe Generale SA. Credit Agricole SA's foreign exchange earnings grew by 23.0%, largely due to fixed income instruments.

In turn, the dynamics in the bond market is neutral: 10-year French treasuries are trading at a rate of 2.776%, which is approximately the same as their yield at the beginning of the month, and 20-year ones are trading at a rate of 3.112% after 3.092% recorded at the beginning of the month.

The growth leaders in the index are Credit Agricole SA (+4.26%), Legrand SA (+4.06%), Stellantis NV (+3.62%).

Among the leaders of the decline are EssilorLuxottica SA (-1.21%), Air Liquide SA (-0.97%), Teleperformance SE (-0.74%), Worldline SA (-0.66%).

On the daily chart, the index quotes are traded within the local ascending corridor, approaching the resistance line.

Technical indicators keep a stable buy signal, which has only slightly weakened recently: the fast EMAs of the Alligator indicator are way above the signal line, and the histogram of the AO oscillator, being in the buy zone, is forming corrective bars.

Support levels: 7050.0, 6800.0. | Resistance levels: 7230.0, 7500.0.

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