European shares slide on tech selloff, French election jitters
11 Apr 2022
CAC 40 is trading up 0.79% at 6599.95
European stocks fell on Monday as surging bond yields slammed technology shares and volatility gripped French blue-chip stocks on forecast of a tight race between President Emmanuel Macron and far-right challenger Marine Le Pen in the final round of voting.
The pan-European STOXX 600 index dropped 0.6%, lead by a 2.1% slide in with technology stocks. Among the regional indexes, Germany’s DAX slipped 0.8% and UK’s FTSE 100 inched 0.4% lower.
France’s CAC 40 reversed opening losses to inch up 0.2% as partial results put Macron in first place after the first-round voting, although Ifop pollsters predicted a tight runoff on April 24, with 51% for Macron and 49% for Le Pen.
French assets have underperformed recently as investors priced in a possibility of a victory for Le Pen, with markets uneasy about her agenda of protectionism, tax cuts and nationalisation. The CAC 40 has shed 1.7% so far in April, while the STOXX 600 is up 0.4%.
Overall, euro zone banks and insurers gained as government bond yields jumped ahead of U.S. inflation data and European Central Bank meeting later this week.
The ECB policymakers are likely be caught between record high inflation and the economic hit from the war in Ukraine, although traders are ramping up of rate hikes.
On technical fronts CAC 40 RSI stood at 49.17 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss: