CAC lags again

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

The Frankrijk 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 Duitsland 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

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.