The CAC index has posted small gains in the Thursday session. Currently, the index is currently trading at 5247.30 and is up 0.49% on the day. In economic news, it’s a quiet day. French Final CPI came in at a flat 0.0%, unchanged from the previous reading. Federal Reserve Chair Janet Yellen will testify before the Senate Banking Committee. On Friday, the eurozone releases Trade Balance, which is expected to show a surplus of EUR 20.3 billion. The US will publish CPI and retail sales reports.
Donald Trump is back in Europe, this time to visit France and take in Bastille Day with French President Emmanuel Macron. The new French President has started off his relationship with the unpredictable Trump on a solid footing, and Macron is eager to make France an important player on the global stage. The French government is also eager to take advantage of Britain’s departure from the European Union. With large companies such as Deutsche Bank relocating their operations from London, France is making efforts to lure lucrative financial sector jobs which are leaving London. Earlier in the week, Prime Minister Edouard Philippe told a banking conference in Paris that he wants the city to become Europe’s main financial hub after Brexit. This will be a tall order, as Frankfurt will likely be the most attractive choice for many large companies. Still, Philippe’s comments underscore that France is looking for a bigger role on the international scene, and Brexit represents a unique political and economic opportunity for the French.
The Trump show is again on center stage in Washington, with more revelations about alleged secret ties between Russia and the Trump administration during the US election. This week’s breaking news is that Donald Trump Jr. admitted that a Russian official contacted him and offered to provide him with evidence incriminating Hillary Clinton. Trump and the White House are trying to lower the flames and put a positive spin on the meeting, but the media and lawmakers (including Republicans) aren’t about to let Trump off the hook. This crisis is just the latest miscue for the Trump administration, which hasn’t been able to pass any significant laws through Congress, even though Republicans control both the House of Representatives and the Senate. The latest dark cloud over the White House has dampened investor confidence in the US economy, and European stock markets could take advantage of the latest political scandal in the US.
