The Paris Bourse is consolidating, almost reluctantly, after six consecutive sessions of gains and a +7% gain in a single trading session (best start to a year in 40 years).
Graphically, the CAC40 index has broken out of a major resistance zone between 6775 and 6850 points, which points to a continuation of the bullish sequence towards 6950 points, says Kiplink.

Investors were a little more cautious after a member of the Fed said that the cost of money will reach at least 5% this year, but also because they feared that Jerome Powell would confirm this statement during a speech on the independence of central banks at a symposium organized in Stockholm by the Riksbank, Sweden's central bank

But the Fed Chairman made no comment on inflation, the recession or current monetary policy.
As a result, the CAC40 index recovered slightly, dropping just 0.6% to 6,865 and the Euro-Stoxx50 only -0.35% to 4,055pts.
Wall Street, which had reversed course at mid-session on Monday, reopened virtually unchanged, with the Nasdaq gaining 0.6%.

Tuesday promises to be devoid of economic statistics or major corporate results: investors seem to be struggling to find anything to push forward the New Year's rally, which had finally taken the CAC above the 6900-point threshold yesterday.
In addition, Asian markets slowed their pace this morning after rising sharply, and could soon enter a bull market, i.e. an increase of 20% since the low seen last October, thanks to the reopening of the Chinese economy.

On the interest-rate front, consolidation is the order of the day, with OATs up 6.5pts to 2.781%, Bunds up 7pts to 2.279%... but BTPs are easing -2pts to 4.193%.

US T-Bonds also improved by 4Pts to 3.541% and the Dollar remained weak at 1.0745E, stabilizing against the main currencies at 103.2 but remaining on a downward trend.


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