Quiet day for CAC

Like the rest of Europe, the CAC’s volumes are a little on the thin side with US markets shut for Martin Luther King Day.

Last week France gave the papers plenty to write about, although a disproportionate percentage of coverage was focused on non-economic issues. Looking at the CAC 40’s movements over the last four months would lead you to believe that traders have been more interested in non-economic issues, too.

To some extent that is correct – primary exchanges for many countries bear little resemblance to their economies. The reason for this is that many firms now see sizable percentages of their income derived from other countries as they expand and become increasingly multinational. The issues facing France today are similar to those facing the UK back in the 1980’s; unions are able to exert too much pressure, and are weakening the competitiveness of France as a destination to base a business.

All of these issues continue to be discounted, however, as the flow of cash into equities has ensured demand at the cost of reason. 

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.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.