CAC Unchanged Ahead of French Consumer Spending, Inflation Reports

The CAC index is unchanged in the Thursday session. Currently, the index is at 5,283.75, up 0.03% on the day. There are no French or eurozone indicators on the schedule. On Friday, France releases Consumer Spending and Preliminary CPI.

French President Emmanuel Macron wants to further integrate the eurozone, and has proposed that the bloc should have its own budget and finance minister. On Tuesday, Macron went as far as proposing that Germany and French completely integrate their markets and corporate rules by 2024. However, Macron may find serious resistance to his plan in post-election Germany, where a weakened Angela Merkel will have her work cut out cobbling together a coalition. Merkel made a first move by appointing her former finance minister, Wolfgang Schaeuble as president of parliament. This astute move clears the path for the pro-business FDP party, which has insisted on the powerful finance portfolio, to join a coalition with Merkel. The FDP is fiscally hawkish and is strongly opposed to Germany continuing to finance weaker eurozone members, such as Greece. If the FDP does take part in the government, Merkel may have to shift away from her pan-European vision, which could ice Macron’s proposal to further integrate the eurozone.

On Tuesday, German industrial giant Siemens AG announced that it would merge rail operations with Alstom SA, a French train manufacturer. The merger is aimed as a response to growing competition in the rail transport sector, particularly from the Chinese state-owned railroad, CRRC. The merger still needs to be approved by regulators, but is already being hailed as an important deal which will strengthen economic ties between France and Germany and will help Europe compete on the global stage. French finance minister finance minister Bruno Le Maire has said that he will ensure the deal, which still must be approved by regulators, does not result in any job losses at Alstrom.

Economic Calendar

Thursday (September 28)

  • There are no French or Eurozone events

CAC, Thursday, September 28 at 8:10 EDT

Open: 5285.35 High: 5296.30 Low: 5278.50 Close: 5283.75

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Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.