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

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

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.
Kenny Fisher

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