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Stock market: the Delta variant worries and weighs on the CAC 40 CAC 40

European equity markets are expected to drop slightly in the wake of Tokyo (-0.81% for the Nikkei on Tuesday). Yesterday evening, the S & P500 and the Nasdaq set new records hoping that central banks’ very accommodative monetary policies will continue for some time. Investors are watching with concern the spread of the Delta variant around the world, which could stem the ongoing global economic recovery. On the Paris Stock Exchange, the distributor of electrical equipment Rexel has raised its 2021 objectives.

Technical analysis of the CAC 40
From a graphical analysis point of view, the DayByDay design office observes a sizeable black candle close to the low of the session. The sellers took control of the market, like on June 23, but without sinking support. The consolidation continues, but the uptrend remains intact. It can therefore resume at any time towards the resistance at 6,845 points.

Rexel has raised its objectives for the year. The electrical equipment distributor expects constant-day sales growth of between 12% and 15% compared to 2020 (vs. 5% -7%), implying a level of activity between around 5% and 8% above 2019. The second half of the year will benefit from the recovery in the United States, where the basis for comparison will be favorable, and from stimulus spending in both North America and Europe and a reasonable price contribution.

CNP ASSURANCES

The rating agency Fitch Ratings has confirmed the financial strength rating of A + (stable outlook) of CNP Assurances, as well as that of the subordinated securities issued by the group. In its press release published today, Fitch Ratings underlines: “This rating reflects the very good commercial profile of CNP Assurances, its strong capitalization and its good level of indebtedness, as well as the stability of its financial results. partly offset by the insurer’s relatively high asset risk, as well as by its sensitivity to the low interest rate environment “.

TuneCore, a leader in online digital distribution for DIY artists and a subsidiary of Believe, has been chosen as the preferred distribution partner for Facebook’s “Independent Artist” program. By launching this program, the social network now allows independent artists and creators to share their music on all the features of Facebook and Instagram more efficiently. This extended partnership increases the possibilities for artists to communicate with their fans and to create the soundtrack of the social activities of the users of these networks.

Cegelec, a specialist in access control in collective housing, announced the conclusion of an acquisition and investment protocol between the partners of S.R.C, the group’s majority shareholder, and RAISE Investissement. The signatories have undertaken to form together a holding company (Cogelec Développement) to acquire the entire capital of SRC, subject to the satisfaction of certain conditions, at 289.20 euros per SRC share, i.e.,, a price of 10.0 euros per Cogelec share by transparency.

The business climate and economic sentiment in June for the eurozone are expected at 11 am. Germany’s inflation for June will be released at 2:30 pm. In the United States, the S&P 500 Case-Shiller Housing Price Index in April will be released at 3 pm and the Conference Board’s Consumer Confidence Index in June at 4 pm. Around 8:30 am, the euro gave up 0.05% to $ 1.1921.

The European stock markets started the week in the red, in a context marked by the strong progression of the Delta variant in several countries and the risks that this poses to the economic recovery. At the same time, investors question the possibility that the Fed will tighten monetary policy sooner than expected. In this depressing context, the macroeconomic agenda could not act as a trigger: it remained blank. At the sound of the bell, the CAC 40 fell 0.98% to 6,558.02 points, and the EuroStoxx 50 lost 0.77% to 4,089.05 points.

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