CAC Rally Continues as Eurozone Indicators Beat Estimates

The CAC index has posted gains in the Monday session. Currently, the index is at 5487.50, up 0.31%. On the release front, there are no French events on the schedule. In the Eurozone, the week started on a positive note. Sentix Investor Confidence improved to 32.9, above the estimate of 31.5 points. Retail Sales rebounded with a strong gain of 1.5%, beating the estimate of 1.4%.

Global stock markets have started the New Year with gains. CAC has jumped onto the bandwagon, posted strong gains of 2.9% last week, and has posted three consecutive weekly wins. Investors are giving the eurozone economy a thumbs-up, a the bloc is on track for a solid fourth quarter, as growth continues and unemployment falls. Inflation has also moved higher, although the ECB is unlikely to reconsider its current stimulus program, which ends in September.

A robust German economy has lifted the entire eurozone, including the French economy.Although economic conditions remain solid, the political landscape in the eurozone’s largest economy remains cloudy. President Angela Merkel is now looking at the Social Democrats to help her make a new government, and preliminary talks are scheduled to begin on Sunday. The negotiations are likely to be lengthy, and the current caretaker government could remain in office for several more months.

Economic Calendar

Monday (January 8)

• 4:30 Eurozone Sentix Investor Confidence. Estimate 31.5. Actual 32.9
• 5:00 Eurozone Retail Sales. Estimate 1.4%. Actual 1.5%

Tuesday (January 9)

• 2:45 French Trade Balance. Estimate -4.8B
• 5:00 Eurozone Unemployment Rate. Estimate 8.7%

*All release times are GMT

*Key events are in bold

CAC, Monday, January 8 at 9:20 EDT

Open: 5479.30 High: 5499.50 Low: 5477.30 Close: 5489.50

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