CAC 40 MIXED/BEARISH AFTER GDP, CPI AWAITED
CAC 40 is currently at 5477.39 – off by 0.44% compared to the last close. For the week, it is up 1.1%, although it is looking at a 0.4% decline for August.
In related economic data released recently, France’s economy expanded at a steady pace in the second quarter as previously estimated. The second and final estimate from the statistical office Insee showed on Wednesday that GDP advanced 0.2 percent sequentially .The growth rate was equal to that of the first quarter and in line with the first estimate released on 27th July. GDP estimate on YoY basis was 1.7% which met market expectations.
Advanced estimate of French CPI (MoM) is scheduled to be released on Friday. The expected index reading is 0.5% with the previous being -0.1%.
Among the top losers in the benchmark, BNP Paribas shares were down by 1.06% (index weightage-6.2%) and ArcelorMittal lost 0.9%(index weightage-1.7%) at the time of writing. Also, French property investment group Unibail-Rodamco-Westfield shares fell on Thursday after reporting first-half results. The firm, which recently finalized the acquisition of Westfield Corporation, posted a jump in profits, but shares were under pressure following a price target cut from Morgan Stanley. The stock was down 5.25 percent and constitutes 2.3% of CAC 40.
On the technical front, the RSI is currently at 56.6% and suggests that the market can move in the downward direction. The current price is around the MA5.The current price is above the middle line of Bollinger bands but is heading downwards. So, overall the market setup seems to be mixed to negative.
Trade Suggestion-Limit Sell At: 5496, Take Profit At: 5479 Stop Loss At: 5504