CAC Edges Lower, French Trade Deficit Matches Forecast

The CAC index has posted slight losses in the Wednesday session. Currently, the CAC is trading at 5,503.80, down 0.17% on the day. On the release front, there are no major events in the eurozone. France posted a trade deficit of EUR 4.7 billion, which matched the estimate.

In the eurozone, retail sales reports were mixed on Tuesday. Retail PMI came in at 51.1 in October, pointing to muted expansion in the retail sector. There was much better news from September retail sales, as gain of 0.7% came after two straight declines, and was the strongest gain since February. The markets are hoping for strong euorozone consumer spending in the fourth quarter, given the robust German economy and stronger economic conditions in the eurozone.

It’s been a banner year for global stock markets, thanks in large part to Donald Trump. Expectations that Trump will cut taxes has improved risk appetite and sent share prices higher. Investors are keeping a close eye on Trump’s determined push for tax reform. Trump wants Congress to pass legislation overhauling the tax code before the end of the year, in what is a very tight deadline. Most Democrats have come out against the proposal, and not all Republicans are on board. The bill is presently being debated in a congressional committee and is expected to move to the House floor next week. The Senate will present its version of the bill on Thursday, so we can expect plenty of activity in Congress in the next few weeks. If the Republicans can pass the bill through Congress, the CAC rally should continue. The index has looked sharp, jumping 6.9 percent since September 1.

Economic Calendar

Wednesday (November 8)

  • 2:45 French Trade Balance. Estimate -4.7B. Actual -4.7B

Thursday (November 9)

  • 4:00 ECB Economic Bulletin
  • 5:00 EU Economic Forecasts

*All release times are GMT

*Key events are in bold

CAC, Wednesday, November 8 at 8:30 EDT

Open: 5489.50 High: 5498.80 Low: 5462.50 Close: 5471.30

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Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.