CAC 40 opens lower this morning but it could have been worse

What was noticeable yesterday was the recovery in the CAC 40. The index managed to reverse earlier falls and a very uncertain opening, to later close higher on the session. That gain of 62 points saw the index end the session at 7,335. That higher daily close came despite heavy losses in the Luxury sector, led by a slide in shares of LVMH. The index has just opened a moment ago and it has been a lower start to the day, but it could have been worse. Earlier the index was priced to reopen below 7,225 and it has just kicked off around 7,275. The DAX opened lower too, but that is also not now as low as earlier priced. Despite that, the outlook does look rather uncertain and much will depend on how the US futures fare from here, ahead of the US opening later on. That said, there is clear evidence so far this week of rotation out of US stocks and back towards Europe. Right now that is much more in favour of the DAX than it is for the CAC and it looks likely to remain that way. The CAC 40 is right now at 7,280