One of the leading indexes of the European economy, CAC 40, is correcting, trading at the level of 7094.0. The French stock market has slowed its growth, holding on to annual high in anticipation of the meeting of the European Central Bank (ECB) on interest rates, the results of which will be known tomorrow, February 2.
The day before, investors were evaluating macroeconomic statistics from France, where economic growth of 0.1% in the fourth quarter of 2022 coincided with the previous quarter. Thus, the annual Gross Domestic Product (GDP) slowed to 0.5% from 1.0% earlier, indicating that the country's economy is getting closer to recession. This is also evidenced by the fall in Consumer Spending by 1.3% in December after rising by 0.6% in November. In turn, the Consumer Price Index increased by 0.4% on a monthly basis, provoking an increase in the annual rate to 6.0%, which interrupted the downtrend and again marked inflation growth, which may accelerate in the first quarter of 2023.
Today, one of the leading software producers Dassault Systemes SA, as well as the marketing company Publicis Groupe, will publish their financial results.
The growth leaders in the index are Stellantis NV (+2.64%), Societe Generale SA (+2.50%), Pernod Ricard SA (+2.04%).
Among the leaders of the decline are ArcelorMittal SA (-1.92%), Alstom SA (-1.63%), TotalEnergies SE (-1.61%), Compagnie de Saint Gobain SA (-1.59%).
On the daily chart, the index quotes are traded within the local ascending corridor, approaching the resistance line.
Technical indicators have already reversed and issued a new buy signal, which is quite stable: the fast EMAs of the Alligator indicator are way above the signal line, and the histogram of the AO oscillator, having moved to the buy zone, is forming corrective bars.
Support levels: 7000.0, 6800.0. | Resistance levels: 7170.0, 7400.0.