France reported more than 139,000 new infections in the last three days
Investors are concerned that the rising number of cases will force authorities to introduce new security measures
The CAC 40 closed the day at 4816.1, which is 1.9% lower as sellers expect an increase to 4660
The CAC 40 price fell nearly 2% today after France reported 52,010 new cases of corona virus on Sunday, another 24-hour record.
Fundamental analysis: New daily record
On Saturday, France reported a new daily record of 45,422 cases, before surpassing this figure on Sunday with more than 50k+ new infections. The latest figures have contributed to the total number of 1,138,507 coronavirus infections in France, which now has the fifth highest number of cases worldwide after the United States, India, Brazil and Russia.
In the last three days alone, 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 number of deaths caused by the coronavirus in France is now 34,761, including the 116 people who have died from the virus in the last 24 hours.
During the massive testing that took place in the country, the number of French people who tested positive rose to 17% on Sunday, compared to 16% from a day earlier and 7% from about a month ago.
In addition to France, other countries in Europe are fighting the second wave of the deadly virus, with some of them reintroducing certain measures to contain the spread.
Aurelien Rousseau, head of the Paris Region Health Department, said the speed at which the virus is spreading is increasing and the situation in health facilities is becoming more tense every day.
Investors fear that the rising number of cases will force the authorities to introduce new security measures that will have an impact on the economy.
Technical analysis: On the verge of decline
The CAC 40 closed the day at 4816.1, 1.9% lower than Friday’s closing price. The index is now trying to break down and close below 4800, which would confirm the break of the rising trend line.
Daily chart of the CAC 40 Index (TradingView)
In this case, sellers would target 4660, a level at which the price action stopped during the September sell-off. If the break is confirmed, the rising trend line is converted to the resistance line.
Summary
On Sunday, 52,010 new coronavirus infections were reported in France, setting another 24-hour record. As expected, the CAC 40 reacted negatively and fell by almost 2% on Monday.
