CAC 40 extends gains above 7,400 as hopes rise on budget deal

Since the last French Prime Minister, Michel Barnier was ousted from office yesterday the CAC 40 has lifted and that was evident yesterday, but at that stage not at all conclusive. That said the index still posted a higher close on the day, at 7,330. Today it reopened at 7,334 and has climbed steadily since then. The index has now risen to 7,432. That almost 100 point gain comes amid rising hopes that a deal on the French budget might be possible and certainly some parties in the rather toxic coalition mix have expressed a desire to reach an agreement. So, right now the CAC 40 is riding that optimism. The fruition of any deal is another matter though and so it remains how much higher the index can rise, without any confirmation of any such deal. The index has already lifted above its 50 day moving average (7,406), but yet to vault the 100 day. That is in place right now at 7,438. So, as you can see, the current price is very close to that just now