French CAC40 index is trading 0.4% higher on Monday around fresh all-time high, boosted by gains in luxury stocks such as LVMH (MC.FR) , Kering (KER.FR) and Hermes (RMS.FR) as traders digested fresh comments from ECB chief economist Lane, who pointed out that rates should raise not only in March but also in May. On the data front, S&P Global France Construction PMI dropped to 45.2 in February from 48.4 in January, which was a ninth straight monthly decline of the French construction sector. Upward move is rather limited as markets brace themselves for tomorrow’s highly-anticipated FED Chair Powell's testimony and the February NFP data on Friday.
From a technical point of view, the FRA40 rose over 30.0% from September lows and is currently testing record high at 7400 pts, however hidden bearish divergence appeared on the Momentum indicator, which indicates that the recent upward rally may be losing steam. If sellers manage to regain control, downward impulse may be launched towards support at 6515 pts which coincides with 23.6% Fibonacci retracement of the upward wave launched in March 2020.
Start investing today or test a free demoOpen account Try demo Download mobile app Download mobile app
FRA40, W1 interval. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.