The CAC is unchanged in the Thursday session. Currently, the index is at 5375.50, down 0.11% on the day. On the release front, France’s trade deficit climbed to EUR 5.0 billion, higher than the estimate of EUR 4.7 billion. Eurozone Revised GDP for the third quarter posted a respectable gain of 0.6%, unchanged since the first quarter of 2017. ECB President Mario Draghi will host a press conference presented by the Bank for International Settlements in Frankfurt. The markets will be looking for clues regarding future monetary policy moves. On Friday, France releases Industrial Production, with an estimate of -0.1%. The US publishes Nonfarm Employment Change, which is expected to soften to 198 thousand.
France’s economy continues to grow in 2017. On Tuesday, French Final Services PMI looked sharp, punching above the symbolic 60-point level. This marked the indicator’s highest level since May 2011. The strong reading is indicative of strong expansion, as the service sector has been buoyed by strong customer demand and strong economic conditions. French service providers remain optimistic that activity in the sector will increase in the upcoming 12-month period. The French economy has rebounded in impressive fashion in 2017, and looks to wrap up the year on firm footing, as a strong manufacturing sector has triggered improved job growth.
It’s been an excellent 2017 for the eurozone, as the bloc’s economy has posted its best growth in years. The manufacturing sector continues to expand, exports have surged and unemployment continues to head lower. The latest ECB economic forecast is predicting GDP of 2.2% in 2017 and inflation of 1.2%. Things are so good that the ECB finally acted and tapered its asset purchase program, although it did extend the program until September 2018. Still, the cautious ECB said on Wednesday that it was concerned about “increased risk-taking behavior in global financial markets” as this could lead to sharp asset price corrections. The ECB is also keeping its eye on political uncertainty in Europe, notably the deadlocked Brexit negotiations and the political vacuum in Germany. In the meantime, European stock markets remain at high levels and the CAC could make further gains if French numbers continue to point upwards.
Thursday (December 7)
Friday (December 8)
*All release times are GMT
*Key events are in bold
CAC, Thursday, December 7 at 7:25 EDT
Open: 5374.50 High: 5398.05 Low: 5371.50 Close: 5375.50
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