Geo-political risk remains elevated at the moment as the Russian/Ukraine crisis continues to drag on. The proximity of Europe to Russia has meant that European stocks fell on the initial invasion news. However, should the geo-political risk fade then it is worth being aware of the very strong seasonal pattern that Franceβs 40 index has in place right now.
Over the last 22 years the CAC40 has risen 18 times between the dates of March 22 and May 01. The Maximum gain was over 15% in 2001. The largest fall was -7.09% on 2012. So, the key observation here is that if Russia and Ukraine a peace agreement over this week the CAC 40 should gain on that news alongside the strong seasonal pattern that is also in place.
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