French stocks subdued ahead of elections

Ahead of French elections on Sunday, European markets, led by France, underperform a tech-driven Wall Street. Here, the S&P 500 (+0.65%) has just hit a fresh record high, and was on course to end up for the fourth consecutive week. Month- and quarter-end flows in high-flying tech keeps US equities supported as we head to the second half of the year.

Meanwhile, French stocks remained under pressure ahead of the weekend, with the benchmark CAC testing its lowest levels since January at the time of writing. Investors are not taking any chances heading into the Sunday's snap elections.

But at current levels of around 7460, the index is at a major support. Let's see if dop-buyers re-emerge next week and drive the market higher. However, if the outcome of the elections reveal even more support for the far right wing RN party, then we could see a wobble at the open next week.


By Fawad Razaqzada, market analyst at FOREX.com