The 8,000 Euro level in the CAC is something that most people are watching from what I can see.
CAC 40
The CAC in Paris is currently trading right around the 7,950 level, sitting just below the crucial 8,000 Euro level. The 8,000 Euro level has been rather resistant to upward pressure over the last several sessions, so it'll be interesting to see how this plays out going forward. After all, so many failures would have you thinking that maybe this is a bearish market, but it would also be folly to ignore the fact that it is awfully resilient in its ability to find momentum to test that area. Sooner or later, it could very well get broken.
The volume has been reasonable over this consolidation phase that we find ourselves in and I think ultimately the major resistance is probably found at the 200-day EMA at 8,078 Euros.
From a fundamental analysis standpoint, there is quite a bit of macro uncertainty out there, not the least of which of course would be the war going on in the Middle East and concerns about energy.
A Tax-Heavy Consolidation Plan
There are budgetary issues as the French government recently utilized constitutional mechanisms to pass the budget without a vote, narrowly surviving no-confidence motions. This has led to a very tax-heavy consolidation plan including extended levies on 300 of the largest companies, which will directly impact CAC 40 earnings.
Sectors are a bit mixed at the moment; the luxury sector remains somewhat resilient, but it is sensitive to the global trade tensions. LVMH is currently providing some support to the index, even as other sectors such as autos lag.
The GDP in France is expected to grow at a modest 1% for the year, while inflation has stabilized near 2%. The anxiety-inducing environment has pushed French household savings to record highs, limiting domestic consumption. At this point, I think the CAC has more or less a neutral to slightly bearish posture. Technically speaking, if we could break above that 200-day EMA, that could change things.