CAC 40 is the outlier ahead of the opening today and here is why

As just noted in the previous update, both the FTSE 100 and DAX futures are lower this morning and currently indicating a lower opening a little later on. As also noted in that previous update, the outlier to all this is the CAC 40. The French stock market closed yesterday at 7,615 with a rise of 170 points on the day and of course that close was substantially above the 7,500 handle and hence certainly positive, but why is that the case? Well, it seems the markets sniff the possibility that Michel Barnier might just be able to galvanise French politicians and potentially enable the formation of a French government. It is after all the lack of that which has been hampering the CAC ever since the outcome of the French election earlier this year. For this reason the CAC 40 is set to open broadly unchanged this morning, but if Barnier fails then all bets will be off