The CAC 40 increased by 1% to approximately 8,404 on Friday, recovering from the prior session as investors concentrated on domestic economic indicators. France’s economy experienced stagnation in the second quarter, failing to meet the initial projection of a 0.2% growth, following a contraction of 0.2% in the first quarter. The latest data intensified the challenges faced by the government in its attempts to control a significant budget deficit.

The initial presidential election debate was characterised by a focus on France’s declining public finances, with candidates advocating for a variety of measures that included spending reductions, tax hikes, increased public expenditure, and lower contributions to the EU. Meanwhile, preliminary estimates indicated that annual inflation increased to a three-month peak of 2.4% in August, up from 2.1% in July.

Attention now shifts to Fitch’s forthcoming evaluation of France’s sovereign rating later today. On the corporate front, EssilorLuxottica experienced a 3.3% increase following the announcement of a share buyback program. Despite Friday’s rebound, the CAC 40 remained on track for a third consecutive weekly decline.