CAC 40 Rises on Manufacturing Surge Ahead of Central Bank Moves

Cac Futures Updates

On Thursday, shortly after noon, CAC 40 exhibited a slight increase, as market participants anticipated forthcoming monetary policy decisions from both the Bank of England and the European Central Bank, alongside significant inflation and personal consumption expenditure data from the United States.

Data indicating an enhancement in French manufacturing confidence for December contributed to a degree of positive sentiment. The Bank of England is set to reveal its interest rate decision at 7 am, followed by the European Central Bank’s announcement at 8:15 am. The Bank of England is anticipated to reduce interest rates by 25 basis points, whereas the European Central Bank is generally expected to maintain its current rates. The CAC 40 in Paris experienced an increase of 22.02 points, reflecting a rise of 0.27%, reaching a level of 8,108.09 approximately thirty minutes after midday.

  • Engie, Bouygues, Bureau Veritas, Danone, Airbus, Euronext, Pernod Ricard, Orange, Veolia Environment, Saint Gobain, and TotalEnergies recorded slight increases.
  • EssilorLuxottica experienced an increase of 1.6%, whereas Safran, Unibail Rodamco, and Pernod Ricard saw gains ranging from 1% to 1.1%.
  • Eurofins Scientific, rising by nearly 3%, emerged as the leading performer in the benchmark index.
  • Among the underperformers, Renault and Stellantis both experienced a decline of approximately 1.5%.
  • Kering experienced a decline of 1.33%, whereas Edenred, Societe Generale, and LVMH saw losses ranging from 0.5% to 0.7%.

Data indicated that confidence among French manufacturers experienced a significant rebound in December, reaching its highest level in over one-and-a-half years, increasing to 102.0 from 98.0 in November. Analysts had anticipated the index to hold steady at 98.0. The resurgence observed at year-end was primarily reflected in the production of other transport equipment, according to the survey.

The overall business confidence index, reflecting the sentiments of business leaders across sectors including manufacturing, construction, services, retail trade, and wholesale trade, improved to 99 in December, up from 98 in November. Meanwhile, the employment climate index experienced a decrease, falling to 95 from the previous figure of 96.