Can France sink stock markets? Bitcoin holding steady

France is being introduced to its third prime minister in a year and investors believe this one won’t be able to turn the tide either. Poland’s airspace was violated by Russian drones and US job figures are constantly being revised downwards. The stock markets are patiently waiting for any sign of good news, although Bitcoin seems to be holding up very well. Will September turn green after all?

France

While we shouldn’t dismiss the geopolitical developments in Poland, the focus of current macroeconomic developments is primarily on France, which is increasingly resembling Greece in 2011. The stock markets believe the situation will be resolved and aren’t showing any sharp declines at the moment. Bitcoin is also holding up very well and has so far remained very close to the opening figure for the month. So far, “red September” hasn’t really lived up to its name. It’s still 20 days before the end, of course.

The performance of the stock markets in European countries that have experienced difficulties over the past decade underscores the fact that reforms and austerity measures can be beneficial for investors. Since 2015, the French stock market has risen by 50%, compared to a 250% increase for the Greek stock market during the same period. This year, the CAC40 has risen by some 5% so far, compared to a year-to-date gain of almost 40% for the Athens Stock Exchange. Since September 2022, the French stock market has risen by less than 40%. The Greek stock market has risen almost 150%.

Support

For crypto, the correlation with the stock markets is rather remarkable. Recently, the largest digital currency has been moving increasingly in tandem with global markets. Support for Bitcoin remains around $105,000, while a small ceiling appears to be around $115,000. Bitcoin continues to move smoothly within this wide trading range.