Crédit Agricole Shares Rebound Nearly 3% in a Favorable Market
Crédit Agricole significantly rebounds at midday, following a broadly higher CAC 40. The stock is approaching its short-term technical benchmarks after several sessions of consolidation, as the ECB has just raised its key interest rates.
The stock returns to its 20-day moving average at €16.67 following the ECB's decision
Crédit Agricole's stock advances by 2.89% to €16.71 during the session, within a CAC 40 that is up by 1.79% and an SBF 120 that has risen by 1.74%. The rebound brings the price back to its immediate contact with the 20-day moving average at €16.67, which previously acted as a technical ceiling. The 50-day (€16.90) and 200-day (€16.91) moving averages remain slightly above, about 1.1% from the current price, and are the next thresholds to cross to confirm an exit from the pullback phase. The RSI at 41 moves out of the lower zone without a signal of overbuying. The session is marked by the ECB's decision, which raised its three key rates by 25 basis points, bringing the deposit rate to 2.25%. This is the first hike since September 2023, justified by a eurozone inflation rate of 3.2% in May. The move mechanically benefits the banking sector: Société Générale leads the CAC 40 with a gain of nearly 6%.
Valued at 7.5 times earnings with a busy corporate calendar
According to the consensus of surveyed analysts, the stock is priced at about 7.5 times the earnings for the current fiscal year and 6.9 times those of the following year, with an expected earnings per share growth of 9.4% year over year. Over the last thirty days, the stock remains down by 2.5%, but still shows a gain of 5.2% over one year. The group also launched its 2026 capital increase reserved for employees at the beginning of June, with a 20% discount, and announced the repayment of 84.2 billion yen of non-preferred senior bonds on July 6, 2026. In the short term, crossing the €16.90-€16.91 zone, where the 50-day and 200-day moving averages intersect, will be the technical element determining the continuation of the movement.
