CAC lags again

The France 40 is in the red as French services and manufacturing fall behind the eurozone average.

The France 40 is trading at 4458, down 0.15% on the day after the latest manufacturing and services reports for France fell into contraction territory, while the overall eurozone is still in expansion.

The gap between France and Germany is widening and traders are starting to pay attention. Germany's service and manufacturing are firmly in expansion territory while France’s is declining; the French index is therefore weak in comparison to the Germany 30.

As Alastair McCaig mentioned, BNP Paribas is still in the news today and the share price of the French bank is unchanged, which is not a good sign considering the stock has lost over 3% in the past week.

The European elections get underway today and, if the polls are anything to go by, we could see a surge in euro-scepticism. This may curtail the austerity packages and reforms that Brussels is trying to implement.

The France 40 has found support around the 4430 level; if we go below this the next support level is 4400. On the upside if there are further talks of a stimulus package from the European Central Bank, we could target 4500. 

France 40 chart

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