CAC 40 Slides 1.6% as Markets React to Global Risks
The CAC 40 cash index closed lower, down 1.60% at 7,952.55 points, with a solid trading volume of €4.315 billion. Over the past week the index has lost 2.01%.
The Paris stock market ended in the red, wiping out gains from the two previous sessions. A meeting in Beijing between Donald Trump and Xi Jinping was called constructive, but it did not produce any concrete progress on the main topics under discussion.
Because of that, investors turned more cautious. They worry about rising inflation pressures in the United States and a lack of clear progress in the Middle East. Recent US statistics this week added to those worries. In Asia, data from South Korea and Japan showed that price pressures are spreading faster in April.
Technology stocks linked to semiconductors and artificial intelligence fell today. STMicroelectronics dropped 4.22% to €52.83 and Soitec fell 2.53% to €148.05. Defensive stocks performed better, with Sanofi gaining 0.98% to €73.96.
June Futures Overview
Resistance levels: 7,936.5 | 8,006 | 8,042.5 | 8,167.5 | 8,247 | 8,331.5 | 8,422.5 | 8,473.5 | 8,663
Support levels: 7,874 | 7,834.5 | 7,779 | 7,730.5 | 7,665.5 | 7,586.5 | 7,540.5
Intraday bias is bearish below 7,938 points.
Graphically, the CAC 40 future (data as of 14:00) shows a fragile picture after opening a gap down between 8,036 and 8,006 points that buyers have not yet filled. The index is now close to its short‑term accumulation zone between 7,900 and 7,850 points. A close below this zone could trigger a longer consolidation phase, with the first warning level at 7,854 points (our intraday alert). The next supports are at 7,779 and 7,730.5 points. If market sentiment worsens further, breaking these levels could push the price toward the 7,540‑point area.
On the upside, a recovery would first need to fill the entire gap opened today, then break the intermediate resistance at 8,042.5 points. A short‑term bullish trend would be confirmed if the index stays above 8,076 points for three consecutive sessions. Technically, the CAC 40 could also re‑enter its long‑term upward channel, whose lower bound is around 8,270 points—an encouraging sign. In a friendlier market environment, the index might also close the continuation gap between 8,336 and 8,358 points, followed by the rupture gap between 8,473.5 and 8,544 points, eventually aiming for the upper channel limit near 8,800 points.
From an indicator perspective, the index is trading below its 20‑, 50‑, and 200‑day moving averages. The MACD histogram is falling below the signal line, the RSI is neutral, and volumes are down compared with the previous session.
Conclusion: We keep a cautious stance amid ongoing geopolitical uncertainty. Future adjustments will depend on whether the market can revive its long‑term upward momentum or return to the short‑term accumulation zone. Any new positions will be taken only after solid technical signals appear, such as the emerging "cup with handle" pattern seen on Aubay.
