CAC 40 Hits Five-Month High as Rate Hike Fears Ease

Cac Futures

France’s benchmark index CAC 40 reached a five-month high on Friday morning, as stocks continued to build on gains from the previous session, driven by diminishing concerns regarding inflation and a reduction in apprehensions about interest rate increases. However, owing to insufficient backing at elevated levels, the market retraced a significant portion of its initial gains and was approximately unchanged not long ago.

On Wednesday, data from the U.S. Labour Department indicated a smaller than anticipated increase in non-farm payroll employment for June, which alleviated worries regarding a potential immediate interest rate hike by the Federal Reserve. The CAC 40 increased by a mere 3.76 points, reflecting a rise of 0.04%, settling at 8,478.62 after reaching a peak of 8,515.25.

  • ArcelorMittal experienced an increase of 3.7%, whereas Veolia Environment, Engie, and Legrand saw rises of 1.85%, 1.8%, and 1.7%, respectively.
  • Schneider Electric, Eiffage, Michelin, Airbus, Euronext, Vinci, and Bouygues experienced gains ranging from 1% to 1.3%.
  • STMicroelectronics, Safran, Renault, and Bureau Veritas experienced an increase of 0.7% to 0.9%. BNP Paribas, Publicis Groupe, and Unibail Rodamco recorded slight increases.
  • Shares of the voucher and benefits company Pluxee experienced a notable increase of approximately 7% following its third-quarter revenue, which exceeded analysts’ forecasts.
  • L’Oreal experienced a decline of 3.1%. Kering and Stellantis experienced declines of 2.4% and 2.3%, respectively. Hermes International, EssilorLuxottica, Carrefour, and LVMH experienced declines ranging from 1.2% to 2%.
  • Pernod Ricard, Danone, Accor, Orange, and Dassault Systemes exhibited signs of weakness as well.

Final purchasing managers’ survey results published by S&P Global indicated that the euro area private sector experienced stabilisation in June following two months of moderate decline. The Eurozone composite output index recorded a level of 50.0 in June, an increase from the 48.5 observed in May. The flash score registered at 49.5. The final services PMI increased to 49.4, up from 47.7 in the preceding month. The score was initially estimated at 48.9. Despite an improvement in French private sector activity since May, the sector has continued to experience contraction for the sixth consecutive month.

The composite output index recorded a value of 47.2, a decrease from May’s 28-month low of 44.9 and the preliminary estimate of 47.6. The services PMI increased to 46.8 in June, up from 44.3 in the preceding month. The flash score registered at 47.4. France’s industrial production experienced a slight decline in May, following two consecutive months of growth, according to the statistical office INSEE. Industrial production decreased by 0.1% in May compared to the previous month, diverging from the 0.3% increase observed in April and the 1.4% rise recorded in March. Economists had projected a monthly decline of 0.3%.