CAC 40 Ends Session Slightly Lower
The French benchmark index slipped 0.14% to finish at 8,347.20 points, with an average daily volume of €3.542 billion.
Paris‑based equities fell after the U.S. released its December Consumer Price Index (CPI). The CPI rose 0.3% month‑over‑month and 2.7% year‑over‑year, matching expectations and leaving the Federal Reserve’s short‑term policy path unchanged.
At the same time, geopolitical headlines added pressure: former President Donald Trump warned of an immediate 25% tariff on Iranian trade, while the Pentagon outlined several possible military scenarios, reviving market‑wide risk concerns.
Oil prices reacted strongly. Brent crude jumped 3% to $65.80, and WTI climbed 3.44% to $61.30, bolstering energy‑related stocks. TotalEnergies led the CAC 40 with a 2.21% gain to €56.53, while Vinci fell 4.46% to €116.55 after a Bank of America under‑performance recommendation, underscoring a cautious market tone.
January Futures: Key Levels
Resistance zones: 8,157.5 – 8,177.5 – 8,193 – 8,218 – 8,285.5 – 8,329.5 – 8,408.5
Support zones: 8,143 – 8,117 – 8,055.5 – 7,991 – 7,926.5 – 7,910.5 – 7,897 – 7,859 – 7,830 – 7,765
Intraday bias remains bullish above the 8,264‑point mark.
Technical Snapshot
On the 14:00 snapshot, the CAC 40 futures chart showed a brief pause after flirting with the upper channel edge, but no clear reversal sign. The index has posted three consecutive closes above a pivotal technical threshold, indicating lingering upward momentum.
For a stronger rally, buyers would need to re‑assert themselves, ideally backed by a friendlier geopolitical backdrop or fresh macro‑economic catalysts. In that scenario, the next target could be around the 8,408.5‑point ceiling.
If the index retreats into the 8,177.5‑to‑8,055.5 range, the technical structure may be weakening, potentially pulling the market toward the midpoint of its historical corridor near 8,106 points. A break below that level could shift sentiment bearish, with the first downside target at 8,055.5 points. Sustained moves under this mark might open the door to a deeper correction toward the 7,991‑point support or even the long‑term lower channel boundary close to 7,950 points.
From an indicator perspective, the CAC 40 stays above its 20‑, 50‑ and 200‑day moving averages. The MACD histogram is narrowing while staying above the signal line, the RSI hovers in neutral territory, and trading volume is higher than the previous session.
Outlook
We remain vigilant on market dynamics and geopolitical developments, especially given the latest technical cues. Portfolio adjustments are ongoing, with attention to mid‑cap stocks that have not confirmed their trends. Should market conditions deteriorate further, we are prepared to increase hedging activity or adopt a more defensive, short‑biased strategy.
