CAC 40 rotates lower as France reports another daily record of new cases

CAC 40 price fell nearly 2% today after France reported 52,010 new coronavirus cases on Sunday, which is another 24-hour record.

Fundamental analysis: New daily record

On Saturday, France reported a new daily record of 45,422 cases, before topping this number with 50k+ new infections on Sunday. The latest numbers have contributed to the total number of 1,138,507 coronavirus infections in France, which now has the fifth-highest number of cases in the world after the United States, India, Brazil and Russia.

Just over the last three days, France reported more than 139,000 new infections, compared to the 132,000 reported cases during the lockdown from mid-March to mid-May.

The total death toll from coronavirus is now 34,761 in France, including the 116 people that died from the virus in the last 24 hours.

During the massive testing conducted in the country, the number of French citizens who tested positive surged to 17% on Sunday, compared to 16% from a day earlier and 7% from about a month ago. 

Apart from France, other countries in Europe are also fighting the second wave of the deadly virus, with some of them reintroducing certain measures to curb the spread. 

Aurelien Rousseau, a chief of the Paris region health authority, said the pace at which the virus is spreading is increasing and the situation in health institutions is becoming tenser each day.

Investors are worried that the rising number of cases will push authorities towards introducing new safety measures that will produce an impact on the economy. 

Technical analysis: On the cusp of breaking lower

CAC 40 closed the day at 4816.1, which is 1.9% lower compared to Friday’s closing price. The index is now attempting to break lower and close below 4800, which would confirm the break of the ascending trend line. 

CAC 40 index daily chart (TradingView)

In this case, the sellers would aim for 4660, a level where the price action stopped during September’s selloff. In case the break is confirmed, the ascending trend line will be transformed into the resistance line. 

Summary

New 52,010 coronavirus infections were reported on Sunday in France, registering another 24-hour record. As expected, CAC 40 reacted in a negative fashion by dropping almost 2% on Monday.

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