Market: Does the resistance hold at 7300 points?

( – The Paris stock exchange is expected to be in the red on Tuesday at the opening, pending the reopening of Wall Street closed yesterday for a long weekend, and whose orientation should stimulate a market trend.

Around 8.15am, the CAC 40 index ‘futures’ contract – passed on the July deadline – fell 19 points to 7304.5 points, signaling a note of heaviness at the open.

The CAC ended Monday’s session down 1% at 7314 points, particularly penalized by the deterioration of the bond sector in Europe.

Fixed income markets in the Old Continent actually had a tense start to the week, wiping out their gains on Friday, meaning erratic movements ahead of the next rate hikes from the ECB.

The 10-year German bond thus tends towards 2.51%, while the French OAT rises to 3.03%.

A small cause for relief, the CAC 40 managed to close Monday’s session above its major resistance at 7305 points, a configuration that comes to accredit the ambient optimism around the index.

“Graphically, the CAC 40 index should continue its upward sequence to exceed the upper level of 7400 points and seek its annual and historical records”, according to the chairman of Kiplink Finance teams.

A bearish trend still prevails in Asia on Tuesday, where
Tokyo (-0.2%) continues its consolidation after its successful start to the year, which allowed it to gain almost 28%.

Again, the Nikkei index manages to stay above the symbolic threshold of 33,000 points, which is a 33-year high.

Tuesday’s session is expected to be more lively than the previous day in the stock markets with the reopening of Wall Street after the long weekend of ‘Juneteenth’ and whose direction should give direction to the market.

Futures contracts are currently signaling an open down around 0.3% or 0.4% on Tuesday for the New York indexes, all of which posted comfortable gains last week.

If the economic agenda looks relatively lighter, investors will pay particular attention to the publication, first in the afternoon, of housing starts and building permits.

These figures may confirm recent signs of recovery observed in the US construction sector.

In any case, it does not support the dollar, which continues to be punished by the prospect of a serious slowdown in the economy during the second half of the year.

The euro is thus approaching 1.0830 this morning against the dollar.

Crude prices remain on the downside as investors do not want to buy cheap after their recent decline due to the ongoing context of slowing demand.

A barrel of Brent lost 0.3% to $75.9, and that of US light crude oil (WTI) fell &.4% to less than $70.8.

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