One night in Singapore – CAC 40 and rest of the world

CAC 40 is expected slightly up on the Friday

The lights are still green. Donald Trump and Kim Jong Un will meet in Singapore on the 12/11/2018. Wall Street, which had benefited from the surge in oil prices following the withdrawal of the United States from the Iranian nuclear agreement, continued its progress. The Dow Jones thus signed its sixth consecutive rise. Apple continued its ascent to a new all-time high with market capitalization approaching $1 trillion.

Peace discussion in Singapore

Oil prices remain firm, with crude oil gaining 0.31% last night at $71.6 a barrel in New York. The US markets were relieved above all by a more modest than expected rebound in consumer prices in the United States in April. These data were closely monitored as uncertainties remain about the pace of Fed interest rate hikes this year. Therefore, the Dollar paused after its recent rise.

For its part, the Paris Stock Exchange, which yesterday resisted the dollar’s decline well, continued to use its highest levels for five years, with a new annual closing record, should continue its momentum today. It will be necessary to remain attentive to the complicated political context in Italy with the risk of seeing a populist government at the head of the country. The Cac 40 is expected to rise slightly at the opening.

There are not many appointments this Friday. Today’s main statistic will be released at 16:00: the U.S. consumer confidence index according to the University of Michigan in preliminary May data.

On the stock front, the eyes will be on ArcelorMittal, the only CAC 40 company to publish its quarterly accounts today. The world’s leading steelmaker, which benefits from good market conditions, posted a sharp increase in gross operating profit (+12.6%), above expectations, supported by the rise in steel prices. We still do not recommend to go long on the security.

Saint Gobain will also be monitored, as it will relinquish control of Sika, as several shareholders of the Swiss company have multiplied legal proceedings to prevent the implementation of an agreement signed in 2014. Whoever Saint Gobain is owns 10.75% of Sika.

To be noted as well the historic summit between Donald Trump and Kim Jong Un will therefore take place in Singapore on June 12. And it was the American president who ended the suspense on Thursday by announcing the news on Twitter, his favorite megaphone. The venue of this meeting was not chosen at random. Singapore is considered a neutral state, with rather good relations with Washington and Pyongyang.

Day off yesterday in Germany, so little to report. We took a long position on Lufthansa stock – good outlook compared to European competition, AirBerlin / AirFrance / Alitalia in difficulty / Aeroflot on the watch list Below the short & mid term resistance levels of 4-traders.

Trade wisely and at your own risk !

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