CAC Slides to 4-Week Low, Eurozone GDP Next

The CAC index has started the week with losses. Currently, the CAC is trading at 5,339.30, down 0.73% on the day. On the release front, there are no French or eurozone indicators on the schedule. On Tuesday, the eurozone releases Flash GDP, and ECB President Mario Draghi will participate in a panel at an event organized by the ECB. Later in the week, we’ll get a look at French and eurozone inflation, with the release of CPI reports.

It has been a healthy 2017 for the eurozone, which releases Flash GDP on the third quarter. The markets are expecting a repeat of the 0.6% gain in the second quarter. France’s economy has also rebounded, and GDP has grown by 0.5% for three consecutive quarters. The OECD is predicting that the French economy will expand 1.7%, up from its previous forecast of 1.3%.

The CAC suffered its worst week since August, as the index declined 2.3 percent. The primary factor in the slide was negative corporate earnings from major European companies. The CAC has posted four straight losing sessions, and finds itself lower on Monday as well, with almost all listings in red territory. Currently, the CAC is at its lowest level since mid-October. At the same time, the CAC posted strong gains in October, and could rebound if US President Trump’s tax proposal is able to pass through Congress. Trump wants the tax bill on his desk before the end of the year, but that will be a tall order, as some Republicans lawmakers are not happy with the proposal and could vote against it.

Economic Calendar

Monday (November 13)

  • There are no eurozone or French releases

Tuesday (November 14)

  • 5:00 ECB President Mario Draghi Speaks
  • 5:00 Eurozone Flash GDP. Estimate 0.6%

*All release times are GMT

*Key events are in bold

CAC, Monday, November 13 at 6:55 EDT

Open: 5382.75 High: 5387.30 Low: 5348.50 Close: 5339.30

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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.