Michael Hall, Head of Distribution at Spectrum Markets, the pan-European trading venue, has commented on how European retail investors responded yesterday ahead of the first round of French Parliamentary Election.
‘Trading activity on Spectrum Markets, the pan-European trading venue for financial instruments, boom on the CAC 40 after the first turn of the French elections, which reignite the interest of retail investors on the main French index. After the election day, trades related to CAC 40 saw a boost on Spectrum Markets, peaking on Monday, with trades executed on July 1st almost doubling the daily average over the past weeks.
The results seem to have pleased markets, which reacted positively to first verdicts of the polls. SERIX data, the pan-European sentiment index elaborated by Spectrum Markets, related to CAC 40 reached the level of 115 on July 1st, reaffirming a sense of confidence towards the French benchmark.
Elections results, however, did not seem to have taken retail investors by surprise. SERIX data ahead of the election day already showed a positive outlook: the SERIX value for the CAC 40 increased from 101 at the end of May to 106 in June, while the value for the FTSE MIB, which is important since Italy is the second market particularly exposed to the volatility caused by French turmoil, went up from 98 at the end of May to 102 in June.
Investors do not seem to believe that the potential changes in the French government are going to determine significant modifications to the French economic policy.’
For a detailed methodology and explanation of the SERIX calculation, please click here.
