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CAC 40 index continues to trade in a bull market. Here are the next targets

France’s CAC 40 index continues to trade in a bull market supported by the opinion from French Finance Minister Bruno Le Maire. Bruno Le Maire said this Monday that the French economy is “doing well” thanks to a rise in consumer spending.

The outlook for the industry remains positive, and France’s Finance Minister expects that the economy could grow 6% this year. CAC 40 index is currently trading less than 5% below 7,000 resistance, and as long the CAC 40 is above 6,500 points, there is no risk of the positive trend reversal.

Agnes Benassy-Quere, the chief economist of the country’s treasury, said that France’s high vaccination rates make another lockdown unlikely; still, the Delta variant of the coronavirus together with further new variants continue to pose risks. Agnes Benassy-Quere also said that France should shift to address the challenges of the climate transition for industry and employment as the auto and aircraft industries face carbon emissions problems.

“We need to be very careful to keep the skills and to innovate in these sectors because the major shock ahead will be the environmental transition. This is what we need to be focused on now: less on pandemic and more on green transition,” said Agnes Benassy-Quere, the chief economist of the country’s treasury.

Eurozone business activity continues to perform well; still, the ECB’s President Christine Lagarde said that the ultra-loose monetary policy would remain in place, and it is too early to discuss tapering. Interest rates will not rise until there is sufficient evidence that the pace of price growth will persist “durably” and the current ultra-loose monetary policy is good for risk-takers.

According to estimates, corporate earnings should post strong results for the third quarter of 2021, and Christian Stocker, an equity strategist at UniCredit Bank, said that European stocks could advance even more. Next week, the macroeconomic calendar will include the preliminary estimates of the EU inflation data, and investors will continue to pay attention to the central bank’s commentary looking for any clues.

Technical analysis: CAC 40 index is currently trading less than 5% below 7,000 resistance

Data source: tradingview.com

CAC 40 index is currently trading less than 5% below 7,000 resistance, and if the price jumps above 6,800 points, the next target could be around 6,900 or even 7,000. It is important to say that 6,500 points represent the current support level, and as long the price is above this support, there is no indication of the positive trend reversal.

Summary

CAC 40 index continues to trade in a bull market, and if the price jumps above 6,800 points, the next target could be around 6,900 or even 7,000 points. France Finance Minister Bruno Le Maire said this week that he expects a growth forecast of 6% for 2021, while Agnes Benassy-Quere, the chief economist of the country’s treasury, said that France’s high vaccination rates make another lockdown unlikely.

The post CAC 40 index continues to trade in a bull market. Here are the next targets appeared first on Invezz.

Source: INVEZZ

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