EWQ recently moved above the $25.50 level and is flirting with $26. The ETF currently resides just a tenth of a percent below its 52-week high.
“The French election adds to widespread anxiety about the future of Europe. It comes in the wake of the UK’s Brexit vote, the surprise U.S. election outcome and ahead of elections in the Netherlands and Germany later this year. French bond yields have soared to near five-year highs against German bunds, reflecting worries that the populist far-right candidate Le Pen could win the presidency,” said BlackRock in a recent note.
EWQ allocates over 37% of its combined weight to industrial and consumer discretionary stocks while financials and healthcare names combine for over a quarter of the ETF’s weight.
“Will the test be successful again and contain prices as it has for the past 17 years? We don’t have the answer but this prolific of a trend line should not be underestimated. However, given the relative momentum in stock markets across the European continent, this might be the CAC-40’s best chance yet at breaking this resistance,” according to ETF Daily News.
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