CAC 40 is trading down 2.25% at 6244.41
European stock markets weakened Thursday, handing back some of the previous session’s hefty gains ahead of new high-level Russia-Ukraine talks and the latest policy-setting European Central Bank meeting.
By 3:50 AM ET (0850 GMT), the DAX in Germany traded 1.9% lower, the CAC 40 in France dropped 1.8%, while the U.K.’s FTSE 100 fell 1%.
European equities posted strong gains on Wednesday, with the DAX and the CAC 40 both closing over 7% higher after crude prices suffered their biggest one-day drop in almost two years amid indications that major producers could increase supply to make up for the disruptions caused by the Western sanctions on Russia.
Markets have been roiled over the last couple of weeks by Russia’s invasion of Ukraine, with commodity prices, and oil, in particular, soaring to record levels, raising stagflation fears.
Investors are now focusing on the meeting later Thursday in Turkey between Russia’s foreign minister Sergei Lavrov and his Ukrainian counterpart Dmytro Kuleba, the first meeting between the two since Russia’s invasion.
Investors will also be watching the latest policy-setting meeting from the European Central Bank Later Thursday, with the policymakers having to walk the tightrope caused by surging energy prices likely exacerbating already record-high inflation as well as slowing growth.
On technical fronts CAC 40 RSI stood at 39.39 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:
TRADE SIGNAL – : CAC 40 – SELL: 6238.94, TARGET: 6120.77, STOP LOSS : 6393.46