CAC Posts Slight Gains, French CPI Matches Forecast

The CAC has posted gains in the Thursday session, erasing the losses which marked Wednesday trade. Currently, the CAC is at 5423.30, up 0.46% on the day. On the release front, Eurozone CPI Flash Estimate edged up to 1.5%, missing the estimate of 1.6%. French Preliminary CPI remained unchanged at 0.1% in November, matching the forecast. On Friday, the eurozone and France release Manufacturing Final PMI reports.

Bank stocks have made gains this week, following testimony from Fed Chair Designate Jerome Powell. On the CAC, Credit Agricole has gained 1.41% on Thursday. At a confirmation hearing on Tuesday, Powell, said that he favored tailoring regulations for small banks, leaving the toughest regulations for the largest banks. Powell takes over the helm of the Federal Reserve in February, and is expected to continue the Fed’s current monetary policy, which has been marked by small, incremental gains.

French President Emmanuel Macron has big plans for reforming the eurozone, including a parliament, budget and finance minister for the bloc. However, he will need the help of Angela Merkel to realize these aspirations, and Merkel has her hands full on the domestic scene, as she tries to form a new government. Coalition talks fell apart after the Free Democrats pulled the plug, and Merkel has now entered into exploratory talks with its former coalition partner, the social democrats (SPD). However, many SPD members don’t want the SPD to be relegated to a junior party in the coalition, as was the case prior to the election. The SPD is likely to take advantage of Merkel’s weak hand and press demands for greater government spending and a looser immigration policy, and could demand the powerful finance ministry as their price to enter a Merkel government.

 

Economic Calendar

Thursday (November 30)

  • 2:45 French Preliminary CPI. Estimate 0.1%. Actual 0.1%
  • 5:00 Eurozone CPI Flash Estimate. Estimate 1.6%. Actual 1.5%
  • 5:00 Eurozone Core CPI Flash Estimate. Estimate 1.0%. Actual 0.9%
  • 5:00 Eurozone Unemployment Rate. Estimate 8.9%. Actual 8.8%

Friday (December 1)

  • 3:50 French Final Manufacturing PMI. Estimate 57.5
  • 4:00 Eurozone Final Manufacturing PMI. Estimate 60.0

*All release times are GMT

*Key events are in bold

 

CAC, Thursday, November 30 at 7:05 EDT

Open: 5408.30 High: 5433.65 Low: 5391.50 Close: 5423.30

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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.