CAC Unchanged in Subdued Trading

After posting strong gains late last week, the CAC index is showing little movement. The Paris exchange was closed on Monday and Tuesday. In Wednesday trade, the CAC is at 5367.80, up 0.06% since the Friday close. There are no eurozone or French events on the schedule, so traders can expect a quiet Wednesday session.

The CAC has been quiet this week, but that could change after the Christmas break, when investors return from holidays and assess the volatile political situation after the election in Catalonia. Will the stock markets react negatively to the strong showing by pro-independence parties? The vote marks a scathing rebuke for Spanish Prime Minister Mariano Rajoy, who called the snap election after imposing direct rule on the region after Catalonia declared independence from Spain. Rajoy’s heavy-handed approach has failed to curb the pro-independence movement, and Spain could be headed for more political turmoil in the coming months.

The French economy continues to rebound, as indicators in the second largest economy in the eurozone continue to point upwards. The economy has been expanding, exports are up and unemployment has dropped. Consumer spending, a key driver of economic growth, looked sharp in November, jumping 2.2%. The impressive reading comes after a decline of 1.9% in October and marked the highest gain since February 2012.

 

Economic Calendar

Wednesday (December 27)

  • There are no French or eurozone events

*All release times are GMT

*Key events are in bold

 

CAC, Wednesday, December 27 at 8:35 EDT

Open: 5361.50 High: 5388.50 Low: 5350.50 Close: 5367.80

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.