The CAC index is unchanged in the Wednesday session. Currently, the index is at 5510.80, down 0.05% on the day. On the release front, there were no surprises from Eurozone Final CPI, which dropped from 1.5% to 1.4%, matching the forecast. Eurozone Final Core CPI came in at 0.9%, as expected.
It’s been an impressive jump out of the gates for European stock markets in 2018. The CAC index is up 3.5% in January, and there’s room for the rally to continue. The French economy continues to perform well, boosted by steady growth and lower unemployment. On Monday, Finance Minister Bruno Le Maire said he expected 2017 growth around 2 percent, and that 2018 growth should exceed the government forecast of 1.7%. There have been positive developments on the political front in Germany, as Angela Merkel’s conservatives and the Social Democrats have signed a coalition blueprint, raising hopes that coalition talks will bear fruit and the country will have a government in the next few months.
With the eurozone economy on the rebound and inflation levels higher, speculation is rising that the ECB could wind up its stimulus later in the year, and perhaps even raise interest rates. The ECB tapered stimulus from EUR 60 billion to 30 billion per month, but ex
Is the market getting a bit ahead of itself? On Tuesday, Bundesbank President Jens Weidmann said in a newspaper interview that he did not expect interest rates to rise until mid-2019, even if QE ends in late 2018. If Weidmann reiterates this stance on Thursday, this could weigh on the CAC.
Economic Calendar
Wednesday (January 17)
- 5:00 Eurozone Final CPI. Estimate 1.4%.
- 5:00 Eurozone Final Core CPI. Estimate 0.9%.
*All release times are GMT
*Key events are in bold
CAC, Wednesday, January 17 at 6:20 EDT
Open: 5489.50 High: 5512.50 Low: 5487.80 Close: 5510.80
