The CAC 40 goes beyond the 5600 points after the PMI and US employment

  •   08/01/2021 - 08h33
  •   DEHOUI Lionel

The Paris Stock Exchange continues its progression in the green. Thus, the CAC 40 has posted an interesting performance on the equity markets. In fact, the index surpassed the 5 600 points bar, to the great satisfaction of investors. However, the coronavirus pandemic continues to rage in Europe.

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The CAC 40 goes beyond the 5600 points after the PMI and US employment
Image copyright: Guilhem Vellut - Flickr

The CAC 40 index achieves an impressive performance

Announced upwards for the past few days, the Paris Stock Exchange continues to progress in the green. Following the publication of several European indicators in services, it has just confirmed its upward movement. Thus, the CAC 40 has greatly improved its performance.

In fact, the index is now up 0.7% to 5 607 points. Exceeding the bar of 5 600 points, the CAC 40 has just made significant progress. This has not left analysts indifferent. The latter have reacted to this growth of the Parisian index. According to the experts at Kiplink Finance, by maintaining its bullish channel between 5 555 and 5 605 points, the stock is consolidating its position in a bullish configuration.

Moreover, with the current health situation, the Parisian manager was worried about investors' opinions. In reality, he believes that investors' hopes would remain higher than their fears. Consequently, he foresees initial bullish targets that could reach 5 700 or even 5 730 points.

 

Investors focused on the Fed's intentions

The U.S. private sector is going through a complicated period. This led to the destruction of 123 000 jobs last month, according to ADP studies. It should be noted that economists were expecting job creation for December to be close to the number obtained in November, i.e. 304 000. This is unfortunately not the case.

Moreover, investors are particularly interested in an event they are eagerly awaiting. It is the publication of the minutes of the Fed's latest monetary policy committee. Indeed, this publication will provide them with precise indications of the Federal Reserve's real intentions.

However, investors are not ruling out the possibility that the worrisome evolution of the coronavirus will impact the Fed's decisions. Moreover, according to Bloomberg, the pandemic is raging in the United Kingdom with one person in 50 suffering from the disease. This resurgence is due to the recent appearance in the country of a mutant strain of the virus.

 

On the values side

Michelin has made an announcement regarding the phasing out of 2 300 jobs within three years. As a result, approximately 60% of the jobs that will be suspended would be on the basis of early retirement. The remainder will be through voluntary but accompanied departures.

For its part, Alstom announced the successful completion of a senior unsecured bond issue. The amount of the transaction is estimated at €750 million. These will have a maturity of 8 years and a fixed interest rate of 0% that can be paid annually.

For its part, the EMA has made a recommendation concerning the granting of a marketing authorization for the Covid 19 vaccine developed by Moderna. This will be done under certain conditions. This action could help prevent coronavirus diseases in people aged 18 and over.