The CAC 40 inched higher by 0.1% to approximately 8,293 on Friday, continuing the slight upward trend from the prior session as investors adjusted their expectations regarding a potential Federal Reserve rate increase later this month. Federal Reserve Governor Christopher Waller suggested he might support a pause this month should inflation persist in its decline, prompting markets to reduce expectations for a quarter-point rate increase to approximately even odds from around 70% earlier this week.

On the economic front, final estimates indicated that France’s Construction PMI declined to 37.3 in August from 41.5 in July, signalling a more pronounced downturn in the sector and representing the most significant contraction since May 2020. On the corporate front, Legrand experienced a 3.2% increase following Deutsche Bank’s adjustment of its price target to €160 from €150.

This revision is attributed to the company’s exceptionally strong organic growth momentum, even in light of its considerable exposure to the persistently weak building sector. Over the week, the CAC 40 is poised to experience its fourth consecutive weekly decline.