Back off FTSE. CAC is taking the front row this year.
BNP Paribas SA made a bold statement on Thursday saying that the bank favored the France’s CAC 40 as the stock index to watch this year compare to the Great Britain’s FTSE 100, despite the uncertainties surrounding the benchmark due to the French election that could hound the nation’s market.
Despite the benchmark’s annual gate of 4.9% in 2016, compare to the 14% surge of the London-based index, BNP’s Edmund Shing pointed out that investors should keep their eyes on the France’s CAC 40 with several favorable figures giving the index a positive outlook this year.
A note forwarded to the bank’s clients highlighted last year’s economic feat of the French nation, which included the manufacturing PMI of the country touching its multiyear high, consistently buoyant service sector and its consumer confidence sitting on its highest level in near ten years.
The French index has been outperforming the FTSE since 2015, with the currency fluctuations affecting the UK index as a result of the controversial June 23 ballot plus France’s consumer and industrial companies reaching closer to the global market, the trend is expected to continue this year.
The country’s sales growth comprised of French companies is starting to pick up with respective profit margins seen improving.
Meanwhile, the benchmark lost 0.4% on Thursday trading due to Trump jitters brought up by his first news conference, and closed at 4 868.34.