Enthusiasm for the Macron election fades
Many of the buyers of European stocks are also taking on the FX exposure. In the aftermath of the French election that was a great trade as they both rose in tandem.
Now it's reversing and technically, the French CAC 40 has broken below a key technical level.
Former Cisco CEO John Chambers (who is one of the all-time great CEOs) was just on Bloomberg talking about the innovation culture and upside in France.
I agree in the longterm but this chart (and the euro) isn't looking great at the moment. It will take another 2% fall to fill in the election gap and another 2% down to 5000.
