CAC 40: the Parisian index begins a reversal but beware of the ECB

The CAC 40 regains height, but the ECB will be decisive on Thursday

The CAC 40 regained a lot of height on Tuesday, winning nearly 2% when it started the session in the red. The Parisian index took advantage of a renewed appetite for risk in the markets to rise to a high of more than a month at 6200 points yesterday, but the ECB could jeopardize the party tomorrow.

The European Central Bank could decide to raise its rates more than expected, as did several major central banks including the Fed, due to the persistence of inflation. The institution could decide to raise its rates by 50 basis points tomorrow, while this scenario was not considered by Christine Lagarde during her last appearances. It must be said that nine States in the euro zone (out of 19) had an inflation rate greater than or equal to 10% in June, against six the previous month…

After the ECB, investors’ attention will turn to the results of CAC and GAFAM companies while waiting for the Fed next Wednesday. Alphabet will be the first tech behemoth to release its second quarter results next Monday followed by Microsoft and Meta the day after and Apple and Amazon the day after the Fed.

Daily chart of the CAC 40 price – key levels


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