CAC 40 Closes Flat, Week Gains Just Over 1%
The French benchmark index ended the day up 0.01% at 8,151.38 points, with a turnover of €7.608 billion. Over the past week it has risen 1.03%.
Paris’s market closed the session without a clear directional bias, mirroring the European Central Bank’s steady‑hand policy. Investors, however, found a bit of comfort in the latest U.S. inflation numbers released by the Bureau of Labor Statistics. The November Consumer Price Index rose 2.7% year‑on‑year and the core CPI eased to 2.6%, both below market expectations and lower than September’s figures. Although the report carries a methodological caveat linked to the October shutdown, several components—especially used‑car prices and tariff‑affected manufactured goods—show a genuine softening of price pressures.
These data reinforce the view that the Federal Reserve could enjoy a wider room for maneuver, even though official projections still limit any rate cut to a single 25‑basis‑point move in 2025.
On the equity side, Nike surged in pre‑market trading after posting earnings that beat forecasts, yet the stock remains under pressure from weaker sales in Greater China and rising tariff costs that could shave margins in the next quarter.
January Futures: Key Levels
Resistance zones: 7,172 – 8,193.5, 8,237.5, 8,281 – 8,371.5, 8,465, 8,649.5, and a strong ceiling near 9,280 points.
Support zones: 8,152, 8,143.5, 8,101 – 8,087.5, 8,067, 8,016 – 7,978, 7,970 – 7,933, 7,907 – 7,880.5, 7,840, 7,793 – 7,765.5, 7,744.5 – 7,727.5, 7,707.5 – 7,683.5, 7,655, 7,640 – 7,584, 7,560, 7,540 – 7,431.5, 7,378, 7,174.5, 7,060, 6,520 – 6,524.
Intraday, the market displayed a bullish tilt above the 8,172.5 level.
Technical Outlook
The future contract continues to bounce between a well‑defined trading range of roughly 8,016 – 8,172.5 points, a zone that has guided price action since late November. A decisive break above the intermediate resistance around 8,172.5, confirmed over several sessions, would likely reignite short‑term buying pressure and steer the index toward the next horizontal target near 8,324.5 points, which lies close to historical highs.
Only a clear breach of the current peaks could reopen a longer‑term bullish trajectory, with the next aspirational target set around the 8,450‑point mark—coinciding with the upper boundary of the long‑term upward channel.
Conversely, failure to escape the range coupled with a slip below the 8,143.5 support would restore a neutral short‑term bias. As long as that level holds at the session’s close, the market remains indecisive. A break of the mid‑term alert at 7,978 points, however, would trigger a bearish correction toward the 7,890‑point zone. Dropping further beneath the 7,640‑7,560 support area could open the path for a more pronounced decline.
Technical patterns also point to a potential triple‑top formation anchored around 7,060 points. A decisive break of the neckline would open the door to a steep fall, possibly targeting the 5,880‑point level that mirrors the figure’s height.
Strategic Takeaway
We are watching for decisive moves through the key levels outlined above before expanding exposure to our Dynamic and Investor portfolios. While we have already taken modest long positions near the lower edge of the range, any breach of the alert thresholds would prompt us to trim exposure and hedge the portfolios prudently.