Major stocks like CAC 40, Total, Credit Agricole, and Tesla heading towards integration into the momentum program of the stock market.
In the Financial World, Momentum's Stocks Outshine CAC 40 Amid Market Hesitation
🛎️ By Nicolas Gallant (Economic Journalist, Financial Analyst, Technical Analyst)
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The CAC 40 sags during the week, remaining at the same level as last Friday's close. This can be attributed to mixed company performances, ongoing doubts about Donald Trump's tariffs, and profits being taken after CAC 40's rapid gain (+13% between April 7 and April 28). The recent stock surge, bringing them back to their pre-tariff announcement levels, may be overinflated, according to LBP AM (La Banque Postale Asset Management).
On tariff matters, Donald Trump continues to flip-flop. During his speech marking his 100 days in office, the U.S. President defended his raising tariffs stance and insisted that China deserved the hefty commercial taxes imposed on it. However, he also issued an executive order aimed at minimizing the impact of his tariffs on the auto industry, a conciliatory move towards the financial community. Since mid-April, the Trump administration's retreats indicate that the Republican billionaire doesn't intend to significantly weaken the markets[1].
Investing in Stocks 💰 How will the market respond to the economic growth shocks caused by Donald Trump's uncertain policies?
But for investors, it's essential not to become overly confident, as Donald Trump's economic policy isn't likely to normalize quickly. Trump's actions so far have already had significant impacts on the global economy, and these effects are already being reflected in economic statistics. Indeed, in China, the manufacturing index nosedived in April[2].
In the United States, the job market remains robust, at least for the time being. Despite this, consumer confidence has dramatically decreased this month, and LBP AM fears additional economic slowdown in the coming months. Positively, the Fed may be compelled to cut interest rates this summer, stabilizing both stock markets and the economy. In the eurozone, the European Commission's economic sentiment index suggests that the eurozone economy will plateau in the second quarter. European consumer confidence is also waning.
The CAC 40 stalls, while Momentum's stocks climb 📈
Although the CAC 40 hasn't made progress in the past three trading sessions (from Friday night's close last week to Wednesday, April 30), the stocks in Momentum's portfolio have stood out, paralleling impressive performances of stocks such as L'Oréal (+3% in 3 sessions) and Eurofins Scientific (+3% too). Furthermore, our team accurately anticipated the drop in stocks like Total (-3% in 3 sessions) and Schneider Electric (-7% over the period).
Making Stock-Related Decisions 🧰 CAC 40, Total, Crédit Agricole, Tesla... on the Momentum radar this week
In addition to our regular CAC 40 outlook scenarios, this week our team assessed the (bullish or bearish) prospects of various stocks, including Crédit Agricole, Total, Accor, Bureau Veritas, Legrand, Saint-Gobain, Rémy Cointreau, Nexans, and Tesla. Invest wisely in stocks and the CAC 40 with Momentum. Discover our technical, financial, and economic analysis of markets and listed companies every day. Accelerate your annual subscription by three months at no additional cost – simply click the link below.
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- The CAC 40 has remained stagnant, likely due to the uncertain economic growth resulting from Donald Trump's policies, while stocks such as Momentum's, including L'Oréal and Eurofins Scientific, have shown growth.
- This week, Momentum's team has assessed the stock-related decisions for various companies such as CAC 40, Total, Crédit Agricole, Accor, Bureau Veritas, Legrand, Saint-Gobain, Rémy Cointreau, Nexans, and Tesla, providing investing advice for the stock market.
- Progress in the CAC 40 may probably stagnate in the coming months, according to LBP AM, due to decreasing consumer confidence and the European Commission's economic sentiment index suggesting a plateauing eurozone economy.
- For investors, it's crucial to consider the risks associated with the impacts of Donald Trump's economic policies on various stock markets and the economy, as normalization may take time and have unpredictable outcomes.
