Stellantis Stock Outlook Remains Bearish Despite Recent Rise
Stellantis (STLA) stock may decline in the short term after rallying near a major resistance zone at €15. The auto giant has recently benefited from a revival of risk appetite among market participants, thanks in particular to speculation of less monetary tightening by the Fed.
Nevertheless, sentiment could quickly become risk averse again and the markets quickly correct their strong rebound of the past few weeks. Indeed, Fed officials could get tough as the market rebound has eased financial conditions, which is counterproductive to the central bank’s fight against inflation.
Furthermore, the PCE inflation for October, published at the end of the month, may not confirm the marked slowdown in inflation, because the medical component, the main cause of the slowdown in the CPI, is calculated differently.
Finally, e-commerce giant Amazon will share its annual sales figures for Black Friday and Cyber Monday at the end of the month, which could also reignite risk aversion if the figures disappoint.
In the longer term, the Stellantis group should be increasingly penalized by the monetary tightening of central banks, since access to credit and financing conditions are increasingly difficult for consumers and businesses.