It was just last month that French stocks threatened fresh record highs. But after the political events since last weekend, it has been a torrid week for equities in the region. The CAC 40 index in particular is set for its biggest weekly fall since September 2022, with today adding another 1.2% decline.
The index had already broken below its 100-day moving average (red line) to open the week. And now, it is targeting a test of its 200-day moving average (blue line) next. That's a key technical level to watch as the last time the index traded below both the key daily moving averages was all the way back in November last year.
A break below the key level will see sellers feel even more vindicated, with the January low near 7,300 being the next plausible target.
