Drug Maker Sanofi Boosts CAC 40 Higher After Early Losses
French shares swung to positive territory after easing losses in early trade on Friday. France’s CAC 40 index rose 0.22% so far on the day following the release of encouraging Eurozone economic confidence data.
Among a batch of economic releases on Friday, survey data from the European Commission showed that a gauge of Eurozone economic confidence hit a 10-month high at 106.3 in October, which is up from 104.9 in the prior month. However, French consumer spending unexpectedly shed 0.2% in September following a 0.8% increase in August, data from statistical office INSEE revealed.
Also stated by the INSEE, the annual consumer price inflation remained stable at 0.4 percent in the current month, while producer prices added 0.1% on a monthly basis in September, after remaining flat in the previous month.
On the CAC 40 index, declining issues outnumbered advancing issues by 22 to 18. Nonetheless, the index was trading in the green, led by the jump of drug maker Sanofi. Shares of the pharmaceutical company rallied more than 7.0% it raised its profit forecast for the year and announced its plan to complete a €3.5 billion ($3.82 billion) share buyback by the end of 2017.
Compagnie de Saint Gobain SA’s equities also climbed 3% after the building materials firm posted good organic growth in the first five nine months of the year.
On the other side, Nokia Corp topped the list of losers, heading down more than 4%. The technology company reported a quarterly net loss for the third time in a row on Thursday. The decline in the bottom line was resulted from sluggish mobile-network sales and charges related to the company’s acquisition of French rival Alcatel-Lucent SA.
Adding to Nokia’s woes is the news that its Chief Financial Officer Timo Ihamuotila has resigned to join technology conglomerate ABB Ltd. in Switzerland. His position will be filled by Kristian Pullola.
Fig: CAC 40 D1 technical chart
CAC 40 index has been on a rise and is likely to approach the six-month highs at 4579.90 logged on October 24th. The index is being suported by two MAs which are moving under the price action. With the confirmation from the RSI index that is heading upwards to the overbought zone, the index is expected the uptrend.
Buy Stop at 4545.00 , take profit at 4557.00, stop loss at 4540.00