CAC Continues Trading In Sideways Channel
LiteForex Europe | Nov 17, 2016 11:48PM ET
The French stock market index CAC 40 continues trading in the sideways channel.
The market showed almost no reaction to positive macroeconomic statistics from the EU. In the third quarter, the GDP in the euro-zone grew by 1.6% while a trade balance surplus increased to 24.9 billion euro. The main factor affecting markets at present is the upcoming decision of the Fed on monetary policy.
In light of the just passed presidential elections in the US, the regulator might decide not increase interest rates in order to reduce market volatility. However, this scenario is unlikely as the probability of the rate hike keeps staying near 80%. In its turn, the rate hike will lead to a dollar strengthening and a decline in the instrument.
Top performing shares of the index were Publicis Groupe SA (PA:PUBP) +1.23%, Cap Gemini (PA:CAPP) +1.41%, Bouygues (PA:BOUY) +0.80%. Worst performers: LVMH Moet Hennessy Louis Vuitton SA (PA:LVMH) -3.30%, Airbus Group (PA:AIR) -1.65%, LafargeHolcim Ltd (PA:LHN) -1.60%.
The nearest support level is at 4470.8.
The nearest resistance level is at 4501.6.
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