The CAC 40 index does not appear to have suffered from a hangover from France’s hung parliament, as it is presently up 1.19% this Tuesday. This comes as European markets are trading higher the day after the shocks of the last two weeks. Moreover, the CAC 40 index appears relatively stable and unconcerned with the political situation in France, where newly re-elected President Emmanuel Macron’s party lost an absolute majority in the French parliament.
Macron’s Ensemble centrist coalition could not form a majority in parliament after defeat for some of its lawmakers. This meant that despite winning more seats than any other party in the elections, it could not attain the threshold to give it a commanding majority. However, the stock market’s attention appears elsewhere, not domestic geopolitics.
Among the top gainers this Tuesday on the CAC 40 index is Renault, SAFRAN and aircraft maker Airbus, which is 3.04% higher as of writing. Credit Agricole and Societe Generale are also on the gainers list. Conversely, among the index’s losers are ArcelorMittal, LVMH Moet Hennessy Louis Vuitton, Air Liquide and Schneider Electric.
Technically speaking, the bounce at the 5857.73 support prevented the index from falling to 16-month lows at 5704.09. The CAC 40 index outlook below indicates where this price action leaves the French stock market.
