The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
The CAC is trading at 4491 after Paris announced the economy did not grow in the first three months of this year. Yesterday it reported soft inflation figures which underline the problems the country is having. France is the second largest economy in the eurozone but the gap between themselves and Germany is widening and traders are taking notice, especially as its economy is slipping into decline like some of the southern European economies.
The European Central Bank could follow in the footsteps of the Federal Reserve, by interpreting bad news for the economy as good news for the equity markets. This morning the eurozone announced inflation of 0.7% and growth of 0.2% respectively. The stagnating eurozone economy may force the ECB to intervene which could push equity markets higher.
The CAC is finding support at the 4400 level but is finding it difficult to breach the 4500 level. Deutsche Bundesbank will issue its report on Monday at 11am (London time), and if there are hints about monetary easing from the ECB we could exceed the 4500 mark.