Stock market: CAC 40, LVMH, Carrefour, Axa, Stellantis, Thales or… in the Momentum program

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The CAC 40 caused a sensation this week, but Momentum’s stock market pick, Capital’s daily premium investment letter, fared even better.

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– Stock investor, rise in the stock market

The Paris Stock Exchange is on the rise again after Wall Street. The CAC 40 had a very good week (as usual 5 trading sessions, despite two public holidays), still supported by new hopes of a key rate cut by the Federal Reserve (Fed, the central bank of the United States), which weighs on long-term rates (an arbitrage-favoring phenomenon at the expense of government bonds and in favor of stocks, comparative alternative investments).

It must be said that the American economy is gradually losing its luster, similar to the recent release of the United States Purchasing Managers’ Index (the main indicator of the trajectory of economic growth) at half-mast in the service sector, a drop in household confidence (as measured by the University of Michigan Consumer Confidence Index), which yesterday it came in well below expectations, at 67.4 in May versus 77.2 in April (and while economists had expected an average of 76).

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The US labor market is easing, the Fed and the stock market are appreciating

Sharp decline in (non-farm) job creation, weekly jobless filings rise to 231,000 (highest since August 2023), job vacancies fall (down to lowest since February 2021), unemployment rate rises to 3.9% in April ( after 3.8% in March and against 3.4% in April 2023 a year earlier) and a drop to 3.9% in wage growth (the lowest increase since June 2021, after a peak of almost 6% in March 2022) reflect a weakening labor market .

>> Buy and sell your shares in the stock market at the right time with Momentum, Capital’s premium investment newsletter based on technical, economic and financial analysis that has outperformed the CAC 40 since its launch. Get a one-month trial right now with promo code CAPITAL30J free (and without obligation).

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The Fed is waiting for further progress on the inflation front before cutting rates

Gradually, the labor market in the United States is showing signs of easing, while the wage trajectory is returning to a more acceptable pace for the Fed, according to our columnist Alexandre Baradez, head of market research at IG France, who warns, however, that the US central bank should agree to start a tapering cycle key rates, will also need to see progress in disinflation. In this regard, the market is expecting the release of the consumer price index (CPI, the main indicator of inflation) next Wednesday (May 15).

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The CAC 40 took off this week, but Momentum’s stock picks fared better

The CAC 40 jumped 3.3% overnight Friday night. However, stock market picks from Momentum, Capital’s premium investment letter based on technical, financial and economic analysis, saw even better performances over the past week, such as stocks such as Legrand (+8.4%), Carrefour (+5.6%) ) ), Maurel & Prom (+8.6%), Axa (+7.3%)… As for Kering (a stock for which we issued a cautionary note with good timing), the stock, as expected, were significantly behind the CAC 40.

CAC 40, LVMH, Carrefour, Axa, Stellantis, Thales or… in the Momentum program this week

This week, in addition to our daily scenarios on the CAC 40, Momentum weighed the prospects of stocks such as LVMH, Verallia, Stellantis, Axa, Pernod Ricard, Remy Cointreau, Carrefour and Thales with bullish or bearish scenarios. Precious metals lovers were not left out as we reviewed gold’s potential, fueled by hopes of a key Fed rate cut and rising geopolitical tensions. Find our CAC 40 analysis and our stock expectations every day at Momentum. Get a free one-month trial with promo code CAPITAL30J. To take advantage of it, simply click on the link embedded in this article.

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