CAC Rally Continues On Strong Corporate Earnings
MarketPulse | Nov 01, 2017 07:31AM ET
The CAC index continues to have a quiet week. Currently, the CAC is trading at 5,530.00, up 0.50% on the day. On the release front, there are no French or eurozone indicators. In the US, today’s highlight is the Federal Reserve rate statement. On Thursday, the focus will be on manufacturing, as France and the eurozone release Final Manufacturing PMI.
The CAC continues to move upwards, and has climbed 2.8% since October 23. European stock markets have posted strong gains on Wednesday, in response to positive European corporate earnings. Strong performers on the CAC include French car makers Peugeot SA (PA:PEUP) and Renault (PA:RENA), which have gained 1.67% and 0.87%, respectively. On Tuesday, French data was positive, as the French economy continues to improve. Flash GDP remained at 0.5% in the third quarter, matching the estimate. Consumer spending rebounded with a gain of 0.9%, beating the estimate of 0.6%. Preliminary CPI improved to 0.1%, matching the forecast.
After staying on the sidelines for months, the ECB announced last week that it will begin tapering its asset purchase program, from EUR 60 billion/mth to EUR 30 billion/mth. The program, which was scheduled to end in December, has been extended to April 2018. However, ECB President Mario Draghi added a dovish twist to the move, stating that the program would remain open-ended. This provides the cautious ECB with the ability to keep the program in place beyond April without causing strong movement in the currency and stock markets. The euro has reacted sharply to ECB moves (or lack of a move) in the past, and Draghi would like to minimize the ECB’s involvement in market movement.
Economic Calendar
Wednesday (November 1)
- 14:00 US FOMC Statement
- 14:00 US Federal Funds Rate. Estimate
Thursday (November 2)
- 4:50 French Final Manufacturing PMI. Estimate 56.7
- 5:00 Eurozone Final Manufacturing PMI. Estimate 58.6
*All release times are GMT
*Key events are in bold
CAC, Wednesday, November 1 at 7:15 EDT
Open: 5524.50 High: 5537.50 Low: 5521.30 Close: 5530.70
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.