CAC 40: the Parisian index stumbles under a key pivot at 6750 points

CAC 40: the Parisian index stumbles under a key pivot at 6750 points

The Paris Stock Exchange has been struggling to continue its mid-March bullish rally for several weeks. The CAC 40 managed to post a one-month high of 6,830 points on Tuesday March 29, but has since struggled to continue.

Risk appetite eased after renewed uncertainty over the situation in Ukraine, with Moscow brushing aside speculation of a peace deal by indicating the lack of significant progress in the talks and the fact that the conditions of a meeting between Putin and Zelensky had not yet been met.

Sentiment also deteriorated after the US yield curve inverted last week. This signal has preceded every US recession for over 50 years, but it has not been precise enough to predict market developments, with recessions starting on average 19 months after the yield curve inverted.

Developments in the peace talks and economic uncertainties will be the main catalysts for markets, but traders will also be watching media appearances by central bankers this week, including a speech by FOMC committee member Lael Brainard.

Leave a Comment