CAC Almost Unchanged as Markets Eye Catalan Election

The CAC index is showing little movement in the Thursday session. Currently, the index is at  5355.50, up 0.06% on the day. There are no eurozone or French events on the schedule. On Friday, the US releases Final GDP.

President Donald Trump can finally hang his hat on a legislative victory, after a difficult first year in office. On Wednesday, the House of Representatives voted for to pass Trump’s tax reform bill, after it narrowly passed in the Senate, by a vote of 51-48. Trump is expected to sign the bill into law next week. The tax legislation marks the first major overhaul of the US tax code in 30 years, and reduces corporate taxes from 35% to 21%. After failing to overturn Obamacare, the Republicans finally scored a big win, and will now have to sell the tax plan to a skeptical public, with congressional elections slated for November 2018.

Later on Thursday, the US releases one of the most important market-movers, US Final GDP. Investors expect another banner quarter, as the estimate stands at 3.3%, which would be unchanged from the Preliminary GDP release. We could see some movement in the stock markets following the GDP release. Investors are also keeping an eye on French consumer spending, which will be released on Friday. Consumer spending was dismal in October, with a sharp decline of 1.9%, compared to the forecast of 0.0%. However, the markets are expecting a strong rebound for November, with an estimate of a 1.4% gain. Christmas shopping will likely translate into strong consumer spending numbers for December, which could boost fourth quarter economic growth and send the CAC to higher levels early in the New Year.

Economic Calendar

Thursday (December 21)

• 8:30 US Final GDP. Estimate 3.3%

Friday (December 22)

• 2:45 French Consumer Spending. Estimate 1.4%

*All release times are GMT

*Key events are in bold

CAC, Thursday, December 21 at 6:45 EDT

Open: 5334.50 High: 5355.50 Low: 5321.50 Close: 5355.50

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